SNCF Geodis

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Senior Management Expand

 Chairman of SNCF  Guillaume Pépy
 CEO SNCF Geodis, Chairman of Geodis Group  Pierre Blayau
 CEO SNCF Geodis  Marie-Christine Lombard
 Vice President Finance  Laurent Dumas
 Executive Vice President, Freight Forwarding Division  Kim Pedersen
 Vice President, Road Division  Olivier Melot
 Vice President, Groupage Division  Bruno Mandrin
 Vice President, Logistics Division  Jean-Paul Vignal
 Director, Supply Chain Optimisation Division  Marc Walbaum

2013

May - SNCF Geodis announced significant changes to its management team as it sought to "upgrade its organisation, confirming a commitment to support customer development". The new Executive Committee would be led by Marie-Christine Lombard, CEO of Geodis.

Jean-Paul Vignal would undertake a new role as Director of the Supply Chain Solutions unit, grouping the management of the Contract Logistics and Supply Chain Optimisation divisions.

Olivier Melot had been appointed Director of the Groupage & Express Division. He was replacing Bruno Mandrin, who was leaving the company. Melot had been replaced by Olivier Royer as Director of the Road division.

In addition, Kim Pedersen was appointed Director of the Freight Forwarding division on March 1, 2013.

The Group's functional directors were:

  • Pascale Barillot, Communications Director and Director of Corporate Social Responsibility
  • Stéphane Cassagne, Corporate Secretary
  • Laurent Dumas, Chief Financial Officer
  • Gilles Lévêque, IT Director
  • Jean-Louis Vincent, Group Human Resources Director.

Within the Supply Chain Solutions (SCS) unit, Laurent Parat took over from Jean-Paul Vignal as Director of the Contract Logistics division. He was previously deputy managing director. Jean-Pierre Allhoff, previously Sales Director with the Groupage & Express division of Geodis, became Global Account Sales Director. Boris Pernet became Business Solutions and Deliveries Director.

Meanwhile, Marc Walbaum remained Director of Geodis Supply Chain Optimization.

"This organisation change aims at boosting Geodis performance in offering to our customers innovative supply chain solutions in an increasingly complex economic environment", said Marie-Christine Lombard, CEO of Geodis.


 

February - Kim Pedersen was appointed Executive Vice President of Geodis Wilson, starting March 1, 2013. He would be heading the global freight forwarding division of Geodis. In taking this position he also became a member of the group's executive management.

"In Kim Pedersen we have a person at the top of our freight forwarding activities who brings the capabilities, the experience and most importantly the right mindset to lead this important business unit of Geodis further into areas of strong and sustainable growth on a global scale", said Marie Christine Lombard, CEO of Geodis.

Geodis Wilson generated more than 37% of the group's revenue and increased its turnover in 2012 to €2.64bn (2011: €2.39bn). The division employed 7,700 people worldwide, located in 240 offices spread over 50 countries on all continents.

Kim Pedersen joined Geodis Wilson in 1994 (formerly Wilson Logistics). He first became Managing Director in Denmark and later on Regional Vice President of the entire Scandinavian organisation. In 2009, he was appointed Deputy Chief Marketing Officer (CMO) and subsequently joined the Board of Management as global head of Sales & Marketing of Geodis Wilson.

Ownership Expand

SNCF Geodis is the transport and logistics division of SNCF Group. SNCF is a state-owned company.

Brief Profile Expand

SNCF Geodis is the transport and logistics division of SNCF Group (Geodis Group was wholly acquired by SNCF in 2008).

SNCF Geodis is divided into three divisions, Global Offerings (Geodis and STVA), Rail Freight Transport (Fret SNCF) and Fleet Management (Akiem and Ermewa).

Within SNCF Geodis' Global Offerings segment lies Geodis, a global multimodal logistics provider that is based in Europe. It has five core divisions:

  • Geodis Calberson - Groupage and Express
  • Geodis Logistics - Contract Logistics 
  • Geodis BM - Road Division (FTL & LTL)
  • Geodis Wilson - Freight Management Division (Freight Forwarding)
  • Geodis Global Supply Chain Optimisation - 4PL.
In 2012, SNCF Geodis recorded revenues of €9.5bn.

Strategic Analysis Expand

Following the events of the business in 2012, SNCF Geodis expects that 2013 will be characterised by improved profitability for all division segments.

The business underwent restructuring and expansion through acquisitions and contracts throughout 2012.

Acquisitions

In 2012, SNCF Geodis completed several acquisitions. It acquired 51% of the Romanian automobile logistics operator Benga Autologistics. It also acquired MF Cargo, a Hungarian road transport company in March. In addition, in April, its subsidiary Geodis Calberson took over 48 agencies from Sernam. Geodis continued its acquisitions in 2012 with control of Avirail and Avirail Italia.

Contracts

For SNCF Geodis, the main commercial successes inlcuded the signing of a 15-month contract between the French Ministry of Defence and Fret SNCF for the transport of army personnel and equipment across mainland France, and also the renewal of a Fret SNCF contract with Evian and Volvic representing a production volume of over 1,200 trains annually. The business was also selcted to provide logistics and distribution services in Southern Europe for Mattel, as well as logistics services for the Bayer Pharma group. The latter contract made Geodis one of the main logistics service providers in France's health sector.

Other expansion was seen in the signing of a $50m contract between Geodis and the steelmaker Cimolai, as part of an expansion programme for the Panama Canal.

STVA, a subsidiary of SNCF Geodis and a provider of finished vehicle logistics in Europe won bids for the distribution of Renault group vehicles in Germany and the UK. Also, its subsidiary, GTSM, was awarded the sub-contracting of the Tangier Med Vehicle Terminal handling activities.

Through its parternship with Hupac, the companies have develop their combined transport networks on the European East-West line via France and Belgium. Since April 2012, SNCF and Hupac have combined their networks on the Antwerp-Dourges line operated by SNCF Geodis.

© 2013 Transport Intelligence
Geodis

Growth by Acquisitions

In 2011, Geodis completed the acquisitions of Pharmalog and One Source Logistics.

The acquisition of Pharmalog coincided with the company's growth strategy of expanding in the pharmaceutical industry. Geodis claimed the acquisition would place it among the top three players in healthcare logistics in France. Other verticals that Geodis have particularly targeted for growth are automotive and hi-tech.

The acquisition of US based One Source Logistics, a non-asset based freight broker which specialises in providing domestic transportation services focused on truckloads and less-than-truckloads expanded Geodis Wilson's presence in the USA.

“Taking over One Source Logistics is a first step in the company’s growth strategy in the U.S.,” said Philippe Gilbert, Geodis Wilson’s executive vice president. “With the extended link to domestic services in North America we are able to satisfy the needs of a wide range of our air freight and ocean freight clients.”

Geodis Wilson CEO Jean-Louis Demeulenaere said the company planned to at least double its freight forwarding business in the coming five years through external and organic growth.

Demeulenaere said the company’s focus on the American market had already proved a success with revenue of $1bn across the entire region.

Fret SNCF - Rail Freight Transport

Cost Reduction Programme

By 2013-2014, SNCF Fret aims to achieve a break-even result. At the end of 2011, SNCF Fret believed that it was on track to meet this target, following a reduction in operating losses to €337m compared with €427m in 2010.

Since 2010, Fret SNCF has been reducing its single-wagon activity, which before the global economic crisis accounted for 70% of the company’s global annual losses, the equivalent of about €300m. This has been replaced by a “multi-load, multi-clients” (MLMC) service. Fret SNCF now runs more direct routes and fewer interconnections, and routes that were rarely used have ceased operating.

However, as a result of Fret SNCF's restructuring and cost reduction programme which is seeing it leave many market segments and geographical areas in France, opportunities have arisen for other rail freight providers to fill the gaps it has left behind.

In the first six months of 2011, the market share of French private rail freight operators increased to 23%, compared with 18% a year earlier.

An example of private providers taking over Fret SNCF business is the loss of its contract with long term customer Gefco in September 2011, said to be one of its top five contracts. Groupe Eurotunnel subsidiary Europorte, Colas Rail, and Deutsche Bahn subsidiary Euro Cargo Rail were set to take over the Gefco contract.

Looking forward, Fret SNCF will have to be careful in balancing the need to remove unprofitable services with relinquishing market share.

Rail Network Maintenance

2012 will be impacted by the implementation of the 2012 Annual Service regarding rail activities in France with engineering work undertaken on the network, that would disrupt services to a greater extent than years past. Fret SNCF has been hit by serious difficulties in obtaining train slots on the French rail network, largely due to a vast programme of modernisation work being carried out which is set to last until 2015.

Most of this work is being carried out at night, when the majority of freight trains operate, so as to limit the impact on passenger services.

In response to the question of which segment of the rail freight market would be affected worst by the maintenance programme, Sylvie Charles, director of Fret SNCF commented, "probably combined road-rail transport as it’s the most time-sensitive, in the sense that trucks synchronise with the arrival of trains. Rail “motorway” services are suffering too. For example, Lorry Rail has built up multi-daily frequencies on its service between Perpignan and Luxembourg to the backdrop of the slots crisis – hardly the best climate in which to expand."

© 2012 Transport Intelligence
Global Contract Logistics 2012: Focus 2012

In 2011, Geodis completed the acquisitions of Pharmalog and One Source Logistics.

The acquisition of Pharmalog coincided with the company's growth strategy of expanding in the pharmaceutical industry. Geodis claimed the acquisition would place it among the top three players in healthcare logistics in France. 

Other verticals that Geodis have particularly targeted for growth are automotive and high-tech.

The acquisition of US based One Source Logistics, a non-asset based freight broker which specialises in providing domestic transportation services focused on truckloads and less-than-truckloads expanded Geodis Wilson's presence in the USA.

"Taking over One Source Logistics is a first step in the company's growth strategy in the U.S.," said Philippe Gilbert, Geodis Wilson's executive vice president. "With the extended link to domestic services in North America we are able to satisfy the needs of a wide range of our air freight and ocean freight clients."

Geodis said the company’s focus on the American market had already proved a success with revenue of $1bn across the entire region.

© 2012 Transport Intelligence
Global Contract Logistics 2011: Strategy

Freight Forwarding

Geodis Wilson has a very aggressive development strategy which includes an acquisition programme.

The USA is a key area of focus. Management's aim is to double its freight forwarding business in the US from its base of €750m in 2010 within the next 5 years. This will involve external and organic growth. The company has established a 4PL product and in June 2011 bought One Source Logistics, a domestic transportation service provider with a focus on FTL and LTL, backed by a Transport Management System.

The Middle East is also an important region for Geodis Wilson. In 2010 the forwarder opened a new airfreight office in Dubai to support increasing demand for its services as well as advancing its sea-air product.

This year, the company also opened an 8,500 sq m distribution centre in Jebel Ali South within the free zone of Dubai, United Arab Emirates. The new distribution centre marks a strategic step in the company's global growth plan: extending its freight forwarding services to a full–service contract logistics model in the Middle East region.

As well as forwarding services, the company is developing a Vertical Market focus. Specific sector competences include automotive, as well as in the pharmaceutical and hi-tech industries.

Another specific sector it has developed is a Luxury Hotel & Resort Logistics service operating with regional competency centres and a global hotel logistics control tower.

Other verticals include:

  • Aviation
  • Industrial
  • Oil & Gas
  • Retail-FMCG
  • Marine Logistics 

Contract Logistics

SNCF Geodis was created in 2009 in what appeared to be a clear attempt by the French state-owned rail company to imitate the strategy of Deutsche Bahn in its purchase of Schenker. Consequently the contract logistics of the new SNCF-Geodis is very much that of the original Geodis.

Contract logistics within SNCF-Geodis is the responsibility of Geodis Logistics. This is complemented by Geodis-Wilson which is the freight forwarding business of SNCF-Geodis; Geodis International, which handles business outside of Europe and Geodis' own road freight network which includes a depot, pallet-networks (Fortec in the UK) and its complementary warehousing capability.

Markets

By far the most important client of Geodis Logistics is IBM. In December 2008, the two companies agreed an outsourcing deal in which Geodis agreed to assume responsibility for the management of all IBM"s logistics. Although not all aspects of the deal were transparent, it is known that IBM had a logistics spend of approximately €1bn spread across air, sea and land freight. This was a transformative contract for Geodis, making the company"s contract logistics not only larger but also much more international.

One of the characteristics of Geodis is its reliance on the French market. In its domestic market Geodis has a broad market presence covering retail, consumer durables, FMCG (although not generally food), automotive inbound and aftermarket and miscellaneous industrial sectors. Of the latter, electronics and telecommunications are of notable importance. Its presence in this sector was the basis for its relationship with IBM.

Logistics provision is comprehensive within France and some neighbouring companies.

Capabilities

Geodis Logistics is asset based, with extensive warehousing and consolidation resources available in France, Spain, Italy and UK.  It also has resources, often forwarding related consolidation centres, outside Europe. Geodis also has 'in-facility’ capabilities, relevant to sectors such as automotive.

Conclusion

The main strength of Geodis Logistics, its focus on France, is also its principal limitation. Although the company has a significant freight forwarding capability, it lacks the ability to integrate this into contract logistics operations on a global scale. Although within France it has broad presence and its relationship with IBM is important, there is a danger that Geodis Logistics will 'fall between two stools’ and fail to be strong enough in any individual sector. As mentioned the IBM contract could be the platform for transforming Geodis Logistics and the other complementary parts of SNCF-Geodis into a global player.

© 2011 Transport Intelligence
Strategy: 2010 Archive

Due to intensified competition and pricing pressure, the company's aims for 2010 are to focus on commercial development and innovation:

  • the aim in the traditional business sectors, particularly France Parcel Delivery and Express and Logistics, is to obtain market shares through a sales organisation satisfying the needs of shippers and contributing to the development of cross-selling for major customer accounts
  • with regard to the SCO activity, the aim is to perfect the integration of industrial facilities, particularly with respect to information systems in order to win new global customers
  • rail freight fleet management will aim to consolidate the activities of Ermewa, which will provide the division with the fleet management expertise its teams, thus helping to improve the efficiency and profitability of these activities. 

Since its founding in 2008, SNCF Geodis' transport and logistics primary aim has been to support customers global supply chains, through end-to-end management.

Its has highlighted three key priorities for 2010:

  1. Achieve full recognition as a global logistics operator in all its sectors of activity - The new Supply Chain Optimisation (SCO) offering will be the basis of this. It will support key customers on international markets, and strengthen its offerings in freight forwarding, logistics, transport and, in particular, in the global management and optimisation of the supply chain. A recent service introduced by the SCO division is as solutions integrator and as the last stage in logistics sub-contracting, the division will implement management solutions and use external partners wherever necessary.
  2. Transform the business of freight transport by rail - its approach is focused on recovery and reallocation of resources. Towards this, it is working with shipping customers to draft new multi-customer transport plans involving the shipment of larger volumes. The branch is also investing in model transfer (from road to rail).
  3. Be positioned in Europe as a competitive rail operator and as a road operator using multimodal solutions - Geodis is developing combined overland, sea, air and rail transport. Its plan is to promote solutions that enable modal transfer over long distances and from ports and airports, and also to limit CO² emissions, including:
    • rail motorways (Luxembourg/Perpignan, Alpine rail motorway between Aiton and Orbassano, Atlantic rail motorway, London, Turin, etc.)
    • combined transport with the help of Novatrans and Naviland Cargo
    • high-speed European rail freight (definition of a European network with international air and express hubs)
    • development of port activities (investment in multimodal port and overland platforms, contributing to the development of local rail operators in ports, putting in place local partnerships and specialist handling firms).

In addition, Geodis BM is focusing development in the following strategic markets: all industrial segments, chemicals and gas, mass retail, consumer goods, automotive and press. And, in the last year Geodis BM has developed onboard IT systems for all its customers, with a view to continuously improving its service and operation.

© 2010 Transport Intelligence
Strategy: Ownership (2006-2008 Archive)

2008

April - Directors of French international forwarder/logistics group Geodis have unanimously recommended that shareholders accept an offer for the company made by France's state railway company, SNCF.

In a statement, Geodis reported that its board of directors had met yesterday (April 28) to render a reasoned opinion regarding the tender offer initiated by SNCF Participations. It said the board had been provided with several reports. One, prepared by, financial advisors Lazard and BNP Paribas, concluded that the offer price was "in line with the results of the various methods used in order to determine the value of Geodis". A second, prepared by independent expert Ricol Lasteyrie & Associés, considered that the price offered was "fair for Geodis' minority shareholders".

Geodis said its board of directors believed the offer initiated by SNCF "would not adversely affect the interests of Geodis and those of its employees, and that such offer may provide the latter with better security and development perspectives than those which could arise from the status quo".

Regarding the situation of shareholders, Geodis said its board of directors had expressed an intention to tender their own shares to the offer, except the shares that must be held by each director, pursuant to the bylaws of the company, and "unanimously recommends that the shareholders of Geodis tender their shares to the public offer".

Geodis added that the contemplated timeframe of the offer (without taking into account any potential reopening of the offer) was:

  • May 20, 2008: Decision of the AMF on the conformity of the offer.
  • May 22, 2008: Opening of the offer.
  • June 25, 2008: Closing of the offer.
  • July 17, 2008: Settlement delivery.

April - France's state railway company, SNCF, looked set to become a major global logistics player following the announcement that it was to make an offer for the outstanding shares which it did not already own in French international forwarder/logistics group Geodis.

SNCF had for many years been Geodis' main shareholder and currently held 42.37% of its share capital and 45.79% of its voting rights. €135 per share was to be offered to the shareholders in cash, valuing the company at nearly €1.1bn. The offer represented a 79% premium based on the average price of Geodis' shares during March 2008.

As Geodis' management stated, the offer was part of a plan by SNCF to create an international multimodal operator in the field of logistics and transportation. Pierre Blayau, CEO of Geodis, would be in charge of implementing that plan.

SNCF's new chairman, Guillaume Pepy, also mentioned that his company was planning on buying another rail operator in the near future. The acquisition of Geodis by SNCF will bring about the company's renationalisation, undoubtedly bringing protests from the private sector.

However, French politicians see this as a necessary step to help SNCF rival its main European competitor, Deutsche Bahn, which had been highly acquisitive in recent years, for example buying up international forwarders/logistics providers Stinnes/Schenker and Bax Global.
A listed company the majority shareholder is the SNCF group with 42.37% of the shares, the free float totals 40.53%.
Geodis Common Stock Distribution as of December 31, 2007
Source: Geodis

 

Geodis Voting Rights as of December 31, 2007
Source: Geodis
 © 2008 Transport Intelligence

In 2006, Salvepar's interest in the Group was further reduced from 8.59% to 5.85%. Taking these transactions into account, the free float stood at 35.44% at December 31, 2006.

© 2007 Transport Intelligence
SNCF (French Railways) 43.73%, AGF Vie 9.36%, Groupe Salvepar 8.59%, Geodis Mutual Fund 5.85%. 
Geodis Shareholder Structure as at December 31, 2005
Source: Geodis

 

Geodis Group Summary of Organisation Chart December 2005
Source: Geodis
© 2006 Transport Intelligence
Strategy: 2012 News

2012

May - The process of selling a minority stake in GEFCO appeared to be proceeding rapidly. Press reports in Bloomberg and rumours in the private equity business suggested that there had been considerable interest in the offer.

The Bloomberg article named two organisations in particular who were interested in purchasing the stake in GEFCO. One was the French state–owned railway, SNCF with Bloomberg citing trade union officials within the organisation as their source. The other was the investment arm of the French insurance company Axa who confirmed to Bloomberg their participation.

It was also believed that GEFCO has attempted to attract the attention of other investors, including non–French private equity companies.

Although GEFCO had not replied to Transport Intelligence's requests for confirmation, it was believed that the end of the initial stage of 'indicative offers' would be May 25. The initial bids were believed to be non–binding.

It was hardly surprising that French institutions were taking an interest in GEFCO. Of particular interest, although not too surprising, was the interest of SNCF. It already owns the other major French logistics provider Geodis and taking a stake in GEFCO would mean it had equity in the two leading 'less than truck load' providers within France. French state owned enterprises have a habit of buying competitors so it could hardly been seen as a unique development, however it did raise questions regarding competition policy. Such questions are all the more pertinent as GEFCO is a major customer for rail services both in France and across Europe.

The implications of the involvement of the 'Anglo–Saxon' private equity sector were also worth noting. Frequently aggressive and ambitious bidders, they may have the effect of increasing the price of any shareholding; although whether PSA Peugeot–Citroen, the present owner of GEFCO, would be comfortable with the short investment horizons of most of this sector is another question.
February - The director of Fret SNCF commented on the company's 2011 performance and the challenges it faced going in to 2012:

She affirmed that the company was still aiming to reach a break-even position by 2013-2014, "Last year (2011), we reduced operating losses to €337m compared with €427m in 2010 and we aim to reduce the deficit further in 2012.

She also commented on how Fret SNCF's loss-making single-wagon network would be restructured:

"There was a pressing need to address the “non-sustainability” of our single-wagon network and at the end of 2010 we replaced it, launching a “multi-load, multi-clients” (MLMC) service.

"We now have more direct routes and fewer interconnections, and customers benefit from greater transparency. We have stopped serving those points on the network that were complicated operationally and rarely used."

Following the restructure of the single-wagon business, losses had fallen to under €100m and the company planned to achieve break-even in 2013.

"Commenting on how the global recession had impacted Fret SNCF, she remarked: "There was a sizeable decline in the volume of traffic from end-2008 onwards. In the years leading up to the crisis we were transporting around 40 bn tonne/km annually. Last year, our traffic totalled 23bn tonne/km which was up slightly on 2010.

"We are a far leaner operation now, having shed 25% of our workforce between end-2009 and end-2011 and reduced our locomotive fleet by 23%. Over the same period, our turnover has decreased by 13%, so we have become more productive. Downsizing could continue as we seek greater productivity gains."

She also cited other factors for the company's continuing financial struggles: "Along with other operators, we have also been hit badly by serious difficulties in obtaining train slots on the French rail network, largely due to a vast programme of modernisation work being carried out and which is set to last until 2015.

"The choice was made to carry out most of this work at night, when the majority of freight trains operate, so as to limit the impact on passenger services. The train slots “crisis” dogged us throughout 2011 and unfortunately is continuing in 2012."

She added that intermodal traffic was suffering the most due to these delays, due to the fact that it is the most time-sensitive because trucks must synchronise with the arrival of trains.

Commenting on whether 2012 would be a year of more favourable market conditions, she said that, "The slowdown which kicked in last autumn is still with us and shippers are telling us there is little or no market visbility. It will continue to be a rocky ride, but I remain optimistic that Fret SNCF is on the right track and will be able to take full advantage when things do pick up.
Strategy: 2011 News

2011

September - Fret SNCF lost its long standing contract with Gefco, the logistics arm of carmaker PSA Peugeot-Citroen. Other private rail freight operators in France looked set to take over the business, highlighting the gradually reducing dominance of Fret SNCF in France's rail freight market.

Gefco stated that it was not renewing the contract “as a result of Fret SNCF’s new multi-load, multi-customer service not meeting expectations”.

Nevertheless, Fret SNCF subsidiary Captrain would continue to carry automotive components for Gefco between its plant at Vesoul, in Eastern France, and Kalaga a fast-developing car manufacturing centre in Western Russia, said Gefco.

From the new year, Gefco said it would be sharing the former Fret SNCF business between three private French rail freight operators: Euro Cargo Rail, a Deutsche Bahn subsidiary, Europorte (Eurotunnel) and Colas Rail.

The loss of one of its top-five key accounts constituted a body blow to the operator, which has seen its traffic diminish as a result of the opening-up of competition in the sector in France and compounded by the economic downturn.
 
It was almost certain to compromise the company’s recovery plans which made provision for attaining a financial break-even position in 2013. The company had made heavy losses, year on year, over the past decade.

According to figures from rail network manager Reseau Férré de France (RFF), the market share of French private rail freight operators increased to 23% in the first six months of 2011, compared with 18% a year earlier.
September - The Geodis Group strengthened its position on the healthcare market and consolidated its offering with the acquisition of the pharmaceutical pre-wholesaler Pharmalog.

Pharmalog was a pharmaceuticals logistics and distribution company based in Val de Reuil in Normandy, France. It had 50,000 sq m of storage space and a workforce of 150. Pharmalog had revenue of €18m.

The new entity would carry out a full range of value-added operations: sales administration, customer debt recovery, repackaging, management of free medical samples, etc. It had nine specialised platforms in France (warehouses, clean rooms, controlled temperature premises, etc.) a workforce of almost 500 employees.

In the long term, this organisation would be deployed Europe-wide, based on operations already carried out for the health sector by Geodis Logistics in Benelux, Ireland and Italy. At the same time, Pharmalog customers would gain access to all the dedicated services in logistics, distribution and international transport delivered by the Geodis Group to healthcare professionals.

The CEO of Geodis, said: "This new vertical offering places Geodis among the top three players in healthcare logistics in France, as well as opening broad new prospects in Europe. This organisation will bring real benefits for customers since it is a close fit with the services developed by the cross-cutting entity Geodis Global Solutions and the other divisions of the Geodis Group: Groupage & Express, Contract Logistics, Freight Management and Road."
June - Geodis Wilson, the freight forwarding arm of SNCF Geodis, acquired US based One Source Logistics, a non-asset based freight broker that specialises in providing domestic transportation services focused on truckloads and less-than-truckloads.

"Taking over One Source Logistics is a first step in the company’s growth strategy in the U.S.," said Philippe Gilbert, Geodis Wilson’s executive vice president. "With the extended link to domestic services in North America we are able to satisfy the needs of a wide range of our air freight and ocean freight clients."

Geodis Wilson CEO Jean-Louis Demeulenaere said the company planned to at least double its freight forwarding business in the coming five years through external and organic growth.

Demeulenaere said the company’s focus on the American market had already proved a success with revenue of $1bn across the entire region.

SNCF Geodis did not reveal the price of the acquisition.
Strategy: 2010 News

2010

December - Geodis is implementing a new global Transport Management System for its Freight Management division, Geodis Wilson. The new platform will be developed together with CargoWise, a global leader in logistics software. On December 8, 2010, both companies signed a contract to develop and implement the new system within the next three years. 

The new TMS is based on ediEnterprise, CargoWise's award winning platform. It will gradually bring operational, financial and customer relationship management processes under one unified umbrella, resulting in faster and increasingly transparent information flows to the customers as well as increasing operational efficiency. The underlying single-file-concept links all relevant information together in one consistent database. It will be launched as of next year, starting in Europe and Asia-Pacific, and the full implementation will be part of a three year development process. In total, Geodis Group will be investing €20m into this project. 
March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

"With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

Key figures for Bertola (at the time of the acquisition):

  • 2008 revenue: €60.9m
  • Italy’s tenth-largest provider of contract logistics
  • 92 employees
  • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
  • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.

March - Following the acquisition of Giraud's Steel division and Central and Eastern Europe division in July 2009, the acquisition of its two remaining divisions, Northern Europe and Southern Europe (full and partial truckload road transport), will now allow Geodis BM to expand its European coverage, particularly in Spain.

Giraud is the third-largest road freight carrier in Spain, and a major player in France. It is also present in Italy and the UK. The acquisition is therefore an opportunity for Geodis to expand the geographic coverage of Geodis BM in Europe and also to increase revenue through a portfolio of loyal key accounts (automotive, retail and distribution, industry, etc.). The transaction will be concluded very quickly, after employees have been duly informed and after approval by the competition authorities, who are expected to rule on the acquisition by the end of the first half of 2010.

"For Geodis BM, this acquisition is an opportunity to build a true European network and to play a full role in the Group's global end-to-end offering. With this new network, the revenue of Geodis BM will exceed €1bn, based on the expertise of its 5,000 employees," concluded Jean-Louis Demeulenaere, CEO of Geodis.
March - Geodis announced that it had acquired Ciblex, France's fourth-ranked groupage operator and a specialist in small parcel express delivery. Geodis said that it was pursuing several objectives through the acquisition.

It wished to:

  • reinforce its position in the parcel service, a market that had developed considerably over the last few years mainly with the growth of e-commerce in which Ciblex was a leading operator.
  • develop its technical expertise specific to parcel processing, relying on an independent network of more than 700 service providers.
  • improve its value-added services offer that met the needs of the Group's customers mainly in the sectors of e-commerce, healthcare, optical, high tech and spare parts.
  • complete the Geodis transport network in Benelux.

The director of the Groupage/Express division, said: "I would like to welcome the Ciblex teams, who share the same values, quality of service and respect of commitments, which are vital for our customers."

The deputy CEO of Geodis concluded, "I am very pleased with this acquisition, which is part of our strategic priorities and enables us to enrich our global European service offering with specific expertise that will attract our international customers."
Strategy: 2009 News
2009
 
February - The takeover of Rohde & Liesenfeld by Geodis Group was officially completed in Australia.

The global acquisition which took place on January 3, 2008, was intended to strengthened Geodis' position in key markets, including Germany, South Africa, the Persian Gulf and Latin America, where Rohde & Liesenfeld (R&L) handled the largest part of its freight forwarding activities. R&L contribute to an already strong Industrial Projects offer and increase the service portfolio in vital areas such as Oil and Gas.

In Australia, the merger allowed the company to offer extended freight management services including door-to-door supply chain management for major key clients in all five states. With just over 350 staff in Australia, the combination of R&L's forwarding strengths together with Geodis Wilson's brokerage expertise made the new company a serious contender for a variety of supply chain management contracts around the country.
Strategy: 2008 News

2008

December - Geodis' leading entity of SNCF Transport and logistics division, the fourth largest European transport and logistics supplier, acquired IBM's internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi year outsourcing contract.

Through this contract, Geodis will be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

The logistics provider industry is becoming more global, more concentrated, and segmented around customer types and universally better at execution. To cope, this industry has been evolving to offer greater scope and more complex solutions. In this context, since 2007, Geodis has implemented a strategy of moving from a European multi services company to a worldwide logistics provider reinforcing its network in the Americas and in rapidly expanding countries such as China, India, and Russia. The acquisition of IBM"s global logistics services and its world-class global network and treasure trove of skills, expertise and best practices will provide Geodis and its customers' with an immediate access to a worldwide supply chain platform able to design, manage and execute customer solutions.

"This agreement is strategic to reinforce Geodis" position among the world leading logistics providers capable of delivering end to end solutions to its global clients. With this partnership, we will strengthen the skills and expertise required to service, both IBM's and our existing and future client's, core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio,” said Geodis' deputy CEO.

"IBM has long emphasized to its own clients that in a globally integrated enterprise, companies create more value by focusing on critical areas that provide differentiation, while they seek partnerships for non-core activities. This agreement with Geodis underscores this strategy,” said the vice president, global logistics, IBM Integrated Supply Chain. "All of the work that has been done by IBM to develop and integrate its supply chain across all of its businesses, provides us with an excellent opportunity to partner with a world class logistics company and leverage our joint resources on behalf of our many global clients. We are excited about this relationship as it will benefit not only our clients but our employees. Geodis has a passion for this business and they will provide both our clients and our employees with ongoing investment, innovation and growth ”

The transaction was expected to close in first quarter 2009, and it is subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the European Commission of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.Through that contract, stated Geodis, it would be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

"This agreement is strategic to reinforce Geodis' position among the world's leading logistics providers capable of delivering end to end solutions to its global clients," claimed Jean-Louis Demeulenaere, Geodis Deputy CEO.

"With this partnership, we will strengthen the skills and expertise required to service both IBM's and our existing and future clients' core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio."

Geodis said it was increasing its investments outside Europe and the new acquisition complemented the company's existing teams. "By leveraging IBM's employees in more than 50 countries across the US, Canada, Latin America, Europe and Asia Pacific, Geodis' service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion," it claimed.

Geodis said the IBM transaction, which was expected to close in the first quarter of 2009, was subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the EC (European Commission) of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.

SNCF claims that its Transport and Logistics Division is currently the fourth-largest transport and logistics operator in Europe, with annual revenue of €8.5bn.
June - International Freight Management company Geodis Wilson strengthened its growing business in the United Kingdom. The acquisition of Oughtred & Harrison Shipping will boost the ocean export segment of Geodis Wilson and extend the global network coverage in China and Benelux.

O&H Shipping is an air and sea freight forwarder with almost 100 employees, mainly based in Northern England, but also in Belgium and China. Serving more than 1,900 customers, O&H delivers about £ 35 Million to the Geodis Group's net sales.

The combined businesses at current trading will generate over £90m in Net sales with 290 employees based in 14 locations across the UK.

Jean-Louis Demeulenaere, Chairman of Geodis Wilson, explained: “This acquisition shows the Geodis Group’s will to continue investing in freight forwarding, which is an essential part of Geodis’ sustainable growth strategy.”
January - As of January 3, 2008, the Geodis Group has formally acquired Rohde & Liesenfeld, a German-based international air and sea freight forwarding group, after obtaining all regulatory approvals.

The acquisition is intended to strengthen Geodis' position in many of today's key markets, including Germany, South Africa, the Arabian Gulf and Latin America, where Rohde & Liesenfeld (R&L) handles the largest part of its freight forwarding activities. R&L will contribute to an already strong Industrial Projects offer and increase the service portfolio in vital areas such as Oil and Gas.

Jeff Hoogesteger, CEO of Geodis Wilson, stated that the acquisition will enable the company to extend its global network, increase density on major international trade lanes and expand its customer base globally.The German-based international transport logistics company has been Geodis’ main freight forwarding partner since 2002. R&L will be integrated into Geodis Wilson, the freight management section of the Geodis Group, boosting Geodis Wilson’s headcount to a total of approximately 5,500 employees in more than 50 countries.

Finances Expand

2013

April - SNCF Geodis reported a 2.1% decline in revenues for the first quarter of 2013. The division announced revenues of €2.28bn for the first quarter, which was 2.9% when adjusted for constant scope of consolidation and exchange rates.

The company attributed the weak performance to the fact that Western Europe is "still mired in recession". The only business reporting growth year-on-year was Freight Forwarding, where sales increased 6.8% due to higher freight prices. This growth was unable to offset the 7.4% decline in the parcel delivery segment and the 16.3% at STVA; the result of a 14.6% decline of car registrations in France and 13.8% in the Eurozone.

One of the few positives for the division was the performance of operations outside Europe which increased revenues by 5.6%. However, there was 4.6% decline in Europe, largely impacted by a 5.5% fall in revenue generated in France.

Overall, group revenue increased marginally year-on-year to €8.2bn in the first quarter of 2013. A 4.3% increase at SNCF Infra, the infrastructure and engineering division, offset declines of 0.4%, 0.8% and 2.1% at SNCF Proximites, Voyages and Geodis respectively.

SNCF Geodis Finances: Total

2012

SNCF Geodis, the freight transportation and logistics business of SNCF has revenues of €9,515m for 2012, an increase of 0.9% over the 2011 result, €9,427m.

Of all the different sectors within SNCF Geodis, only freight forwarding increased its revenues in 2012, up 7.6% year–on–year. Declines were reported in parcel deliveries (–3%), 4PL services (–4.8%), road haulage (–4.8%), logistics (–3.1%), rail freight (–7.7%) and STVA (–7.9%).

SNCF Geodis' EBITDA declined more markedly by 93% to €136m for 2012. However, the group stated that cost–cutting measures mitigated the impact of lower sales. The decline was particularly noted in the division's Global Freight Transport and Logistics businesses (Geodis and STVA) which fell by €74m. Excluding a €61m fine from the EU Competition Authority, which the group is contesting, rail freight services increased its EBITDA by €40m.
2011

SNCF Geodis reported revenue of €9,427m, an increase of 6.0% or €538m.

At constant scope of consolidation and exchange rates (organic growth), revenue rose just 3.3% or €291m.

Organic growth was driven by the Parcel Delivery and Express, Logistics, and Supply Chain Optimisation arms of Geodis, which generated €85m, €59m and €59m of additional revenue respectively. In SNCF Geodis' Asset Management division, rail carriers and rail freight fleet managers accrued higher revenues of €92m and €49m respectively. Fret SNCF revenue declined by €15m year on year.

SNCF Geodis performed particularly well in the first half of 2011, recording a 6.3% rise in revenue, although this momentum stalled in the second half of the year as revenue went up by just 0.4% year on year.

Major structural changes in 2010 and 2011 increased revenue to the amount of €251m. In 2010, the acquisitions of Giraud, Ciblex, Ermewa, BSL SPA and other changes accounted for €126m, €53m, €35m, €20m and €3m respectively of the increase in 2011 revenue. In 2011, the acquisitions of One Source Logistics, Pharmalog and Ciblex business added revenue of €6m, €6m and €2m respectively. Exchange rate fluctuations decreased revenue by €4m.

International business represented 45% of SNCF Geodis' total revenue.

Operating profit increased by €73m. A rise in gross profit of €123m was partly offset by an increase in net provision movements of €63m. Organic gross profit growth of €40m was accrued by Geodis and STVA (Global Offerings), while Fret SNCF (Rail Freight) recorded organic profit growth of €68m, mainly due to cost control initiatives.
SNCF Geodis Finances: Total [] Convert to
  2008 2009 2010 2011 2012
Revenues 8027.00 m 7377.00 m 8890.00 m 9427.00 m 9515.00 m
EBITDA 269.00 m -49.00 m 104.00 m 237.00 m 136.00 m
Operating Profit -86.00 m -420.00 m -287.00 m -214.00 m -226.00 m
Margin -1.07 % -5.69 % -3.23 % -2.27 % -2.38 %
Export to Excel      Source: SNCF,  Last update: 29/05/2013

Source: SNCF
SNCF Geodis Finances: Revenue by Geographic Location % to Total
SNCF Geodis Finances: Revenue by Geographic Location % to Total [] Convert to
  2012
France 5042.95 m
Europe (excluding France) 2854.50 m
Rest of the World 1617.55 m
Export to Excel      Source: SNCF ,  Last update: 29/05/2013

Source: SNCF
Geodis Finances: Total

2012

Geodis reported that for 2012 its revenues were €7.1bn.
2011

Revenue for the Geodis Group totalled €6,907m, a rise of 5.2%.

Geodis reported revenue gains across all of its business segments apart from Freight Forwarding. The Groupage/Express and Full Truckload divisions contributed the majority of the increase in revenue, raising €262m out of the total €343m increase.
Geodis Finances: Total [] Convert to
  2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue 3370.00 m 3595.70 m 3784.80 m 4782.10 m 5143.30 m 5007.00 m 6563.80 m 6907.00 m 7100.00 m
Operating Profit 133.30 m 85.40 m 106.40 m 122.70 m   -40.30 m 35.10 m    
Margin 3.95 % 2.37 % 2.81 % 2.57 %   -0.80 % 0.53 %    
Export to Excel      Source: Geodis,  Last update: 25/02/2013

Source: Geodis
Geodis Finances: Revenue by Business Segment % to Total

2011

Geodis reported revenue gains across all of its business segments apart from Freight Forwarding. The Groupage/Express and Full Truckload divisions contributed the majority of the increase in revenue, raising €262m out of the total €343m increase.
Note: For 2012 Full Truckload revenues were further split into two segments 'Road' and 'Transport of Finished Vehicles'.
Geodis Finances: Revenue by Business Segment % to Total [] Convert to
  2006 2007 2008 2009 2010 2011 2012
Freight Forwarding 807.00 m 1690.10 m 2065.20 m 1604.00 m 2363.00 m 2347.00 m 2569.00 m
Groupage/Express 1680.50 m 1757.70 m 1654.50 m 1476.00 m 1641.00 m 1796.00 m 1713.00 m
Contract Logistics 797.60 m 832.70 m 883.40 m 820.00 m 985.00 m 1036.00 m 1047.00 m
Supply Chain Optimisation       604.00 m 853.00 m 898.00 m 952.00 m
Road             761.00 m
Transportation of Vehicles             381.00 m
Full Truckload 578.00 m 584.70 m 629.40 m 659.00 m 722.00 m 829.00 m  
Export to Excel      Source: Geodis,  Last update: 29/05/2013

Source: Geodis
Geodis Finances: Groupage (Geodis Calberson)

2012

The Groupage business of Geodis contributed €1,713m to the business' total revenues. This result was almost 5% lower than that reported in 2011.
2011

Groupage/Express revenue rose by 9.4% or €155m to €1,796m.

This business accounted for 26% of its parent's total revenue compared to 24% in 2010.
Geodis Finances: Groupage (Geodis Calberson) [] Convert to
  2006 2007 2008 2009 2010 2011 2012
Revenue 1680.50 m 1757.70 m 1654.00 m 1475.80 m 1641.00 m 1796.00 m 1713.00 m
Profit 34.70 m 34.80 m          
Margin 2.06 % 1.98 %          
Export to Excel      Source: Geodis,  Last update: 29/05/2013

Source: Geodis
Geodis Finances: Contract Logistics (Geodis Logistics)

2012

The Contract Logistics business of Geodis increased its revenues in 2012 by €11m over the 2011 result, to €1,047m.

2011

Revenue amounted to €1,036m, a rise of 5.2% or €51m.
Geodis Finances: Contract Logistics (Geodis Logistics) [] Convert to
  2006 2007 2008 2009 2010 2011 2012
Revenue 797.60 m 832.70 m 883.40 m 819.50 m 985.00 m 1036.00 m 1047.00 m
Profit 27.30 m 23.90 m          
Margin 3.42 % 2.87 %          
Export to Excel      Source: Geodis,  Last update: 29/05/2013

Source: Geodis
Geodis Finances: Freight Forwarding (Geodis Wilson)

2012

Geodis Wilson reported revenues of €2.6bn, a 9% increase over the 2011 result.

2011

Revenue accrued from freight forwarding operations was €2,347m, an fall of 0.7% or €16m.
Note: 2012 revenue for Geodis Wilson of €2,640m was restated following publication to €2,569m.
Geodis Finances: Freight Forwarding (Geodis Wilson) [] Convert to
  2006 2007 2008 2009 2010 2011 2012
Revenue 807.00 m 1690.10 m 2065.20 m 1604.30 m 2363.00 m 2347.00 m 2569.00 m
Profit 17.50 m 46.80 m          
Margin 2.17 % 2.77 %          
Export to Excel      Source: Geodis,  Last update: 29/05/2013

Source: Geodis
Geodis Finances: Road (Geodis BM)

2012

Geodis reported that its Road business segment contributed €761m to its total revenues for the year.

2011

Geodis' Full Truckload/Road division generated revenue of €829m, a rise of 14.8% or €107m.
Note: 2011 Full Truckload revenues included segment revenues for STVA.
Geodis Finances: Road (Geodis BM) [] Convert to
  2006 2007 2008 2009 2010 2011 2012
Revenue 578.10 m 584.70 m 629.40 m 659.20 m 722.00 m 829.00 m 761.00 m
Profit 5.00 m 9.00 m          
Margin 0.86 % 1.53 %          
Export to Excel      Source: Geodis,  Last update: 29/05/2013

Source: Geodis
Geodis Finances: Supply Chain Optimisation

2012

For 2012, the Supply Chain Optimisation division of Geodis reported revenues of €952m, a 6% increase year over year.

2011

The Supply Chain Optimisation division generated revenue of €898m, an increase of 5.2% or €45m.
Geodis Finances: Supply Chain Optimisation [] Convert to
  2009 2010 2011 2012
Revenue 604.00 m 853.00 m 898.00 m 952.00 m
Export to Excel      Source: ,  Last update: 29/05/2013

Source:
STVA Finances: Total
Note: 2011 revenues for STVA were unavailable.
STVA Finances: Total [] Convert to
  2004 2005 2006 2007 2008 2009 2010 2012
Revenue 309.00 m 314.00 m 315.00 m 400.00 m 322.00 m 355.00 m 386.00 m 381.00 m
Net Income 9.00 m 12.00 m 17.00 m          
Margin 2.90 % 3.80 % 5.39 %          
Export to Excel      Source: SNCF,  Last update: 29/05/2013

Source: SNCF
SNCF Group Finances: Total

2012

SNCF Group announced that its revenues for 2012 totalled €33.8bn, up 3% from 2011. The increase was attributed to a 6.4% rise from the SNCF Infra division and a 3.8% rise for SNCF Proximites. However, SNCF Geodis reported 1.6% decline in revenues.

The Group reported EBITDA of €3bn, a slight increase from 2011. However, at €383m, the Group's net profit rose sharply compared to the previous year.

SNCF Geodis, the Group's freight transport and logistics division, reported revenues of €9.5bn, down 1.6% at a constant scope of consolidation and exchange rates. Of all the different sectors within SNCF Geodis, only freight forwarding increased its revenues in 2012, up 7.6% year–on–year. Declines were reported in parcel deliveries (–3%), 4PL services (–4.8%), road haulage (–4.8%), logistics (–3.1%), rail freight (–7.7%) and STVA (–7.9%).

SNCF Geodis' EBITDA declined more markedly by 93% to €136m for 2012. However, the Group stated that cost–cutting measures mitigated the impact of lower sales. The decline was particularly noted in the division's Global Freight Transport and Logistics businesses (Geodis and STVA) which fell by €74m. Excluding a €61m fine from the EU Competition Authority, which the Group is contesting, rail freight services increased its EBITDA by €40m.

SNCF Infra, the Group's infrastructure and engineering division, reported revenues of €5.5bn, up 6.4%, and EBITDA of €290m, up 67% year–on–year.

The two passenger divisions, SNCF Proximites and SNCF Voyages reported revenues of €12.8bn (+3.8%) and €7.5bn (+2.5%) respectively. EBITDA was reported to be €836m (+17%) and €959m (–64%) for the two divisions.

The Chairman of SNCF, commented: "Against a backdrop still affected by economic crisis, SNCF demonstrated excellent responsiveness in 2012. The trend was favourable in public–sector activities delivered under agreements with local and national authorities, due in particular to a vigorous rise in passenger numbers and Keolis' growth outside France."
2011

Revenues amounted to €32,645m, an increase of 7.2%. Operating profit reached €1,255m, a rise of 136.3%.

All business segments grew organically with SNCF's passenger segments performing particularly well. Organic growth accounted for 5.8 percentage points of the 7.2% rise in revenues, or €1,748m. Out of this figure, €1,364m was earned by operational activity, whereas contracts signed in 2010 accrued €384m.

Its revenue growth was also augmented by a number of other factors. Acquisitions made in 2010 that were only fully consolidated into the financial figures in 2011, the creation of a new engineering unit that combined Systra and Inexia, and exchange rate changes all adjusted SNCF's financial performance to the amount of €430m (€417m group structure changes and €13m foreign exchange) or 1.4 percentage points out of the 7.2% increase.

Freight transport and logistics activities recorded slower growth in the second half of the year, whereas growth rates in SNCF's passenger businesses picked up even more to offset the decline.
Note: 2008 figures recalculated.
SNCF Group Finances: Total [] Convert to
  2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue 20231.00 m 20855.00 m 21957.00 m 23691.00 m 25188.00 m 24882.00 m 30466.00 m 32645.00 m 33820.00 m
Operating Profit 1618.00 m 1877.00 m 1323.00 m 1547.00 m 980.00 m 145.00 m 531.00 m 1255.00 m 1458.00 m
Margin 8.00 % 9.00 % 6.02 % 6.52 % 3.89 % 0.58 % 1.70 % 3.84 % 4.31 %
Export to Excel      Source: SNCF,  Last update: 25/02/2013

Source: SNCF
SNCF Group Finances: Revenue by Business Segment % to Total
SNCF Group Finances: Revenue by Business Segment % to Total [] Convert to
  2004 2005 2006 2007 2008 2009 2010 2011 2012
Local Transport 5220.00 m 5478.00 m 5778.00 m 5908.00 m 6340.00 m 6579.00 m 10770.00 m 12324.00 m 12836.00 m
Transportation & Logistics 6650.00 m 6448.00 m 6595.00 m 7726.00 m 8027.00 m 7377.00 m 8890.00 m 9427.00 m 9515.00 m
Long-Distance Passengers, France & Europe 5587.00 m 5963.00 m 6249.00 m 6891.00 m 7469.00 m 7375.00 m 7217.00 m 7279.00 m 7503.00 m
Infrastructure & Engineering 4205.00 m 4359.00 m 4468.00 m 4532.00 m 4823.00 m 5146.00 m 5182.00 m 5295.00 m 5497.00 m
Station Management & Development           883.00 m 1134.00 m 1166.00 m 969.00 m
Common Operations       4190.00 m 4302.00 m 4775.00 m 5021.00 m 5402.00 m  
Export to Excel      Source: SNCF,  Last update: 25/02/2013

Source: SNCF
SNCF Geodis Finances: 2006-2010 Archive

2010

SNCF Geodis Total

In March, Geodis reported that in 2010 it experienced a significant turnaround after the global economic crisis in 2009, when the group reported a decline in revenue and operating income. Its 2010 revenue reached €8,890m, a 20.5% increase on the previous year.

With the exception of Fret SNCF (-€180m), all the division's entities reported revenue growth, with Freight Forwarding perfoming particularly well with an increase of €454m (24.7%).

For the first time, in 2010 more than 50% of the Group's revenue was generated outside France.

Although operating profit improved by 178.9% the Group still a recorded an operating loss of -€327m.

The company said that the integration of the acquisitions made in 2009 and 2010 was proceeding to plan. These include IBM Global Logistics into the Group as a whole, Cooljet and Ciblex into the Groupage & Express Division, Giraud into the Road Division, Sealogis and STSI into the Freight Forwarding Division, and Chevallier and Bertola into the Contract Logistics Division.

Geodis Total

2010 revenue totalled €6,563.8m, a 31.1% increase on the previous year:

  • changes in scope in 2009 and 2010 generated €812.6m in new revenue;

  • exchange-rate differences between 2009 and 2010 contributed €166.2m to 2010 revenue;
  • at constant exchange rates and scope of consolidation, revenue rose 11.6% (+€578.2m) on 2009.
All the divisions contributed to revenue growth, especially the Freight Forwarding Division, which accounts for more than one-third of Group revenue and which posted growth of 50.4%. That increase can be attributed to higher freight prices and a recovery in volumes of air freight (+40%) and sea freight (+22%), especially between Asia and Europe.
2009

SNCF Geodis Total

Revenue decreased by €649m compared to 2008 (-8.1%). On a constant Group structure basis, revenue declined by 16.7%, -19.5% for STVA, considering the automotive market and -21.5% for Fret SNCF.

The €649m decrease was primarily due to:

  • a decline in activity by €1,291m in all division segments:
    • €812m for Geodis, including €216m for the Parcel Delivery and Express division and €436m for the Freight Forwarding division;
    • €343m for Fret SNCF: a 26.5 GTK (Giga Tonnes per Kilometre) decline (26.5 GTK in 2009 vs. 35.9 GTK in 2008);
  • positive Group structure impacts to the amount of €688m
  • a negative foreign exchange impact of €46m, primarily for the Geodis Freight Forwarding division.

The €318m decline in gross profit was attributable to:

  • the €120m decrease in Geodis' profit, the decline in business being partially offset by cost savings;
  • the €204m decline in Fret SNCF's profit, including €30m arising from the provision for the gradual cessation of activity and €37m from the non-recurring impact of the electricity price adjustment recognised in 2008 in respect of 2007;
  • a negative Group structure impact of €8m, mainly within the Geodis Supply Chain Optimisation (SCO) division, whose roll-out required integration and transformation costs.

2007

Geodis Total

At the end of January, Geodis gave an early indication as to the state of the European freight industry in 2007 and prospects for 2008.

Headline revenue for the full year 2007 was up 26.4%, including its acquisition of Wilson from TNT, and 5.4% on a like-for-like basis. Management commented that the group's performance was lifted by a very strong third quarter and sustained growth in the fourth quarter. All business divisions contributed to the increase.

Geodis' groupage revenue (37% of the total) rose 5.3% compared with the previous year. Its French home market revenue experienced a 7.2% rise at €1,426m. Volumes continued to grow in the second half, while price rises, mainly from passing on higher diesel costs, also contributed to the increase.

The group's Euromatic division and groupage businesses in other European countries contributed €360.1m to consolidated revenue, down 5.2% compared with 2006. The decline was mainly due to the discontinuation of loss-making operations in Germany and a December strike by Italian road hauliers.

The freight forwarding division, including Wilson from February 2007, reported a doubling of revenue, helped by like-for-like growth of 10.3%. Asia saw revenue grow 32% like-for-like to €441m, whilst in southern Europe the division generated revenue of €663.9m, an increase of 8.7% like-for-like. Management stated that it considered the operational integration of Wilson now complete.

Contract logistics revenue for 2007 rose 4.4% on a reported basis and 4.1% like-for-like. The rapid expansion of automotive logistics business and the start-up of new contracts in the second half helped to lift revenue for the year to €832.7m.

Full truckload revenue, corresponding mainly to Geodis BM's road haulage operations, totalled €584.7m, unchanged from the previous year.

The results are a good sign for other European logistics operators in Geodis' peer group such as DSV, Schenker and DHL. They show that there is as yet very little sign of a consumer-driven slowdown. Geodis' comments about a solid fourth quarter offer encouragement that fears of a European recession on the back of US economic weakness are possibly being over-played.

Revenue by Geographic Region % to Total

Performances were very uneven across the division in terms of both growth and profitability.

Whereas Groupage in Europe saw revenue decline in 2007, Groupage in France continued to enjoy sustained revenue growth of 7.3%, mainly due to:

  • further growth in volumes, particularly in the first half of the year

  • the full-year impact of new contracts, especially the FedEx contract
  • price adjustments in France following the sharp increase in diesel prices and the cost impact of adapting the Express transport plan to new speed limits applicable to the types of vehicle used.

Owing to these effects, Groupage in France generated revenue of €1,426m, up €96.9m from the previous year. Profit from ordinary activities in France, corresponding to the Calberson network and France Express, stood at €61.0m, representing an operating margin of 4.3%. The 2007 figure was stable with respect to the €60.9m reported in 2006. Operating margin was down compared to 2006 due to new contracts start-up costs and the cost impact of adjusting the transport plan to new speed limits.

In a continuation of the previous year's trend, Groupage in Europe reported a profit from ordinary activities loss of €20.6m for revenue of €286.1m compared with a loss of €17.8m for revenue of €288.9m in 2006.

In Spain, the loss amounted to €9.7m for revenue of €78.6m. Local managers were replaced during the first half of the year and a restructuring plan was implemented in the second half. Most of the major operational difficulties concerned the Barcelona branch.

In Italy, revenue was down by 3.4% due to the impact of the Italian transport workers' nationwide strike in December. Despite the strike, a less pronounced loss of €4.6m was reported in 2007, versus €6.0m in 2006.

In Germany, the Groupage business was terminated on 31 December 2007 after generating a €2.6m loss in 2006 and a €2.9m loss in 2007 for revenue of €8.2m.

While the Euromatic specialised distribution network saw a bigger €5.7m loss in 2007 (€3.4m in 2006), the business seemed to be on the way to recovery, with a smaller loss reported in the second half than in the first.

Revenue by Business Segment % to Total

Contract Logistics

 The Contract Logistics division reported revenue of €832.7m, an increase of 4.4% or €35.1m over 2006, including like-for-like growth of 4.1%. 

The termination of loss-making contracts in 2006 and the decrease in business with IBM were offset by new contract launches in France and Benelux as well as by geographical and business expansion affecting respectively the countries of Eastern Europe and the automotive and reverse logistics sectors. 

Profit from ordinary activities stood at €23.9m versus €27.3m in 2006.

The decrease was mainly attributable to Spain and the IBM contract's reduced revenue contribution, with the majority of the other countries and regions reporting an improvement.

In Germany, revenue came in at €94.9m for 2007 versus €92.8m for 2006, up 2.3%. The termination of a loss-making contract with Thomson in 2006 adversely affected revenue but had a positive impact on the profitability of operations.

In Eastern Europe and Greece, revenue continued to rise in 2007 to total €118.3m versus €109.1m in 2006, representing a full-year increase of 8.4%. The region's robust performance limited the impact of losses and major contract terminations in Romania and Russia recognised in 2006 and in first quarter 2007.  Growth accelerated over the year to reach 14.9% in the fourth quarter. 

Profit from ordinary activities in Eastern Europe came to €3.3m in 2007 versus €1.5m in 2006 due to the termination of a loss-making contract in Russia in the second half of 2006, the turnaround of contracts in Hungary and continued growth in the automotive sector. 

Revenue for the Logistics business in Benelux reached €86.4m in 2007 versus €75.8 m in 2006, signalling a return to growth. The business saw increased volumes with major clients such as Lexmark and IBM, in particular, as well as the launch of a new contract with Moët-Hennessy in Belgium.  Together, these developments offset the loss on the Dell contract in 2006.

In the United Kingdom, revenue stood at €46.6m, down €13.5m from 2006 due to the combined effect of the termination of a Dell contract in first-half 2006 and lower PC distribution volumes in Europe for IBM/Lenovo. The United Kingdom reported profit from ordinary activities of €3.2m in 2007 versus €4.8m in 2006. 

In Ireland, revenue climbed 1.4% to €48.6m from €47.9m in 2006. Profit from ordinary activities stood at €3.6m in 2007 versus €2.8m in 2006.

Freight Forwarding

The Freight Forwarding division, including Wilson from February 2007, reported revenue of €1,690.1m in 2007 versus €807.0m in 2006, up 109.4%, including like-for-like growth of 10.3%.

The Air Freight and Sea Freight Forwarding businesses made relatively equal contributions to Geodis Wilson's revenue, representing 37% and 43% of the total, respectively. Industrial Projects accounted for slightly more than €200m of billings, representing roughly 12% of the division's total revenue.

In the area of industrial projects, volumes handled for Exxon decreased, as the long-term contract launched with that customer five years ago reached a maturity phase.

Profit from ordinary activities came to €46.8m (€17.5m in 2006), representing 2.8% of the division's revenue. This sharp increase was attributable to the following developments:

  • the consolidation of Wilson over the eleven months from 5 February 2007 gave a material boost to Group operating profit.

  • the initial impact of synergies arising on the new networks creation added roughly €3m to operating profit.
  • The 10% like-for-like increase in revenue and the elimination of loss-making facilities in Asia raised the operating profit level of Geodis' Asian subsidiaries.

However, industrial projects, including the Exxon contract in particular, made a lesser contribution than in 2006.

Road Transport

The Full Truckload (Road) division generated revenue of €584.7m, up 1.2% from €578.0m in 2006.

The division includes the road transport activities of Geodis Bourgey Montreuil in France and of the latter's subsidiaries in Italy, the Netherlands, Germany and Eastern Europe.

Revenue was virtually unchanged in like-for-like terms, up 0.2% from 2006, as it was impacted by the termination of a retailing contract at the end of first-quarter 2007.  Growth accelerated however in the second half of the year with the launch of new contracts, in particular with Nestlé Waters.

Profit from ordinary activities rose to €9m in 2007 from €5m in 2006.
2006

Geodis Total

In March 2007 Geodis published its annual results showing a big recovery in both profits and revenue growth. Revenue increased 5.3% over the year to €3.8bn, but operating profits increased 24.6% to €106.4m whilst net income increased by a third to €48.4m.

Cost cutting played a substantial part in the increased profitability of the company, with the previously loss-making business in Italy breaking even. In positive terms, Geodis' growth businesses were its transport activities - LTL, Express and Freight Forwarding.

The tough French road transport market was delivering growth, whilst Geodis Express activities were being helped by its new relationship with FedEx. Geodis was also experiencing growth outside Europe, particularly through its Freight Forwarding business, although the exposure to East Asia should not be exaggerated as it accounts for only €200m of revenue.

Contract logistics appeared to be doing less well with falls in revenue over the year and the company stating that both the core high tech and automotive sectors were doing poorly.

In announcing this year's results, Geodis' management restated a target of 40% growth in revenue by 2007 and a profit margin target of 4%. The revenue target will be helped by its purchase of TNT's Freight Forwarding operations in the last quarter of 2006, not included in these results.

With the acquisition Geodis became one of the world's top ten Freight Forwarders with combined revenues of €1.6bn. However what this will do for return on capital is unclear as Geodis paid a generous €460m to buy TNT's Freight Forwarding operations . 

The company does suffer from a lack of differentiation and lacks global presence compared to its bigger German rivals. Normally this might lead Geodis to be vulnerable to takeover - possibly from a group as openly acquisitive as Deutsche Bahn or even from a Private Equity group which could inject capital in order to expand through acquisition but this was unlikely to happen.

Geodis was still part owned by SNCF, the French state owned railway company and although SNCF may well be willing to sell its 44% stake in part or in its entirety, any buyer would have to be approved at the political level. The government has in the past opposed the sale of French businesses to acquisitive foreign rivals, majorly reducing the number of companies which could be interested.

The consolidated financial statements of June 30th 2007 will include five months of TFM results.
Geodis Finances: Revenue by Geographic Region % to Total (2006-2007 Archive)
Note: As of 2008 SNCF stopped reporting its revenue by geographic region figures.
Geodis Finances: Revenue by Geographic Region % to Total (2006-2007 Archive) [] Convert to
  2006 2007
France 2653.50 m 2840.10 m
Europe (excluding France) 1045.90 m 1594.40 m
Other Countries 243.10 m 626.10 m
Export to Excel      Source: Geodis,  Last update: 25/02/2013

Source: Geodis

Operational Analysis Expand

Operations: SNCF Geodis Operating Structure

SNCF's freight transport and logistics division (SNCF Geodis) is divided into three business units:

Global Offerings

  • Geodis - a global logistics provider that has five core divisions, Geodis Calberson (groupage and express), Geodis Logistics (contract logistics), Geodis BM (road transport), Geodis Wilson (freight forwarding) and Geodis Global Supply Chain Optimisation (4PL).  
  • STVA - automotive logistics provider that transports finished vehicles across Western Europe.

Rail Freight Transport

  • Fret SNCF - is responsible for all of SNCF's rail freight transport. Fret SNCF's subsidiaries expand its services by offering road, rail and sea intermodal solutions.

Fleet Management

The following companies are responsible for the management of SNCF's fleet of freight trains, which includes leasing operations:

  • Akiem
  • Ermewa.
SNCF Geodis Structure
Source: SNCF
© 2013 Transport Intelligence
Operations: Geodis Group Global Network
Geodis is based in Europe and has a worldwide scope with a network covering 120 countries (own name operations in 60 countries) and approximately 30,000 employees.

The Geodis group is divided into five core business division:

  • Geodis Calberson - Groupage and Express
  • Geodis Logistics - Contractual Logistics 
  • Geodis BM - Road division
  • Geodis Wilson - Freight Management Division
  • Geodis Global Supply Chain Optimisation.
Geodis Network
Source: Geodis / Transport Intelligence
© 2012 Transport Intelligence
Operations: Freight Forwarding (Geodis Wilson)

Geodis Wilson is the freight forwarding division of Geodis. It has an integrated network spanning 250 offices in around 50 countries and 7,400 employees. Its offering includes air and sea freight forwarding, management of major industrial projects and customs solutions. The company is headquartered in Amsterdam, the Netherlands.

It manages and oversees a range of freight forwarding operations for air, sea and sea-air freight, combined with track and trace tools and value-added services.

Its integrated solutions are tailored to the specific needs of shippers in the following sectors: pharmaceutical, consumer and retail goods, high-tech, aviation, automotive and oil & gas.

Its value-added services include: bonded transit platform, controlled temperature transit platforms approved for health products, KPI management, consulting etc.

Geodis Wilson also provides turnkey solutions for international projects and industrial projects (installation of offshore pipelines, relocation of industrial plants, out-of-gauge transport and more). It also provides consultancy services and full management of global flows for companies of all sizes.

Geodis Wilson Network
Sea Shipments 420,000 TEU
Air Shipments 210,000 tonnes
Key Verticals Automotive, Aerospace, High Tech, Industrial, Marine Logistics, Pharmaceutical, Retail
Source: Geodis Wilson
© 2013 Transport Intelligence
Operations: Freight Forwarding Volumes
Note: 2012 volumes unavilable at the time of updating this profile.
Operations: Freight Forwarding Volumes [] Convert to
  2009 2010 2011
Air Freight - Tonnage 150000.00 203981.00 210000.00
Sea Freight - Teus 400000.00 444150.00 420000.00
Export to Excel      Source: Geodis Wilson,  Last update: 26/02/2013

Source: Geodis Wilson
Operations: Groupage/Express (Geodis Calberson)

Geodis Calberson has a network of 300 sites covering 25 countries in Europe, and employs approximately 12,000 staff. It offers a range of services including: groupage, express, parcels, part and full loads and specialist distribution. These services rely on four distinct networks:

  1. Geodis Calberson - groupage
  2. France Express - domestic express transport
  3. Geodis Euromatic - specialist distribution Parcel network - with the acquisition of Ciblex, this service meets the needs of e-commerce, as well as the sectors of health products, optics, advanced technology and spare parts.

The Groupage division offers three different services: domestic groupage, letters and parcels (in cooperation with La Poste) and international groupage (consolidate shipments of 3 tonnes or less). The Groupage division includes all the Geodis Group's French subsidiaries operating in the Groupage and Express transport businesses, the Groupage & Distribution businesses in Italy, Spain, the UK and Germany as well as the Euromatic specialised distribution network operating in France and Belgium.

Geodis Calberson Overview
Shipments per year around 55.4m
Vehicles 5,000
Employees 12,000
Source: Geodis
© 2013 Transport Intelligence
Operations: Contract Logistics (Geodis Logistics)

Geodis Logistics is the division of Geodis that provides contract logistics.

It provides both inbound and outbound logistics.

Geodis Logistics Overview
Employees 8,500
Sites in Europe 170
Warehouse area 3m sq m
Key Verticals High-Tech, FMCG/Retail, Healthcare & Cosmetics, Automotive, Industrial
Source: Geodis
© 2013 Transport Intelligence
Operations: Road Freight Transport (Geodis BM)

Geodis BM is the road freight transport division of Geodis.

Distributing throughout Europe, it offers a complete range of road transport options including part and complete batch, upstream and downstream, intersite shuttle services, road and road combined transport, temperature controlled transport, chemical conditioned transport, finished vehicle transport, bulk gas transport, bulk chemical transport, milk-run service, liquid food bulk and concrete mixers.

With SNCF Geodis' acquisition of Giraud in 2010, it was integrated into Geodis BM's network. The addition of Giraud gave Geodis BM a presence in Spain, Portugal, and the United Kingdom. It also extended Geodis BM's existing networks in France, Italy and Germany.

Geodis BM Overview
Employees 4,300
Tractors 1,800
Semi-trailers 3,300 including 840 tankers
Warehousing 250,000 sq m
Sites in France 63
Other Sites in Europe 22
Countries with Geodis BM Offices France, Netherlands, Luxembourg, Germany, Italy
Countries with Giraud Offices France, UK, Germany, Italy, Spain, Portugal
Key Verticals Consumer/Retail, Industrial, Chemical, Automotive, Press
Source: Geodis
© 2013 Transport Intelligence
Operations: Supply Chain Optimisation (4PL)

This offering is based on the integration of global solutions at each stage of the supply chain and for each geographical region, by a partner selected to provide a service with the best guarantees of excellence and competitive performance.

It is based on a network of 1,500 employees in 50 countries worldwide, management of more than 500 sub-contractors and €1.5bn in transport and logistics purchases.

© 2013 Transport Intelligence
Operations: Rail Freight Transport (Fret SNCF)

Fret SNCF is responsible for all of SNCF's rail freight transport. Fret SNCF's subsidiaries expand its services by offering road, rail and sea intermodal solutions.

Novatrans and Lorry-Rail provide road and rail intermodal services while Naviland Cargo provides maritime combined railway services. Captrain is responsible for all of Fret SNCF's rail freight transport outside of France in the rest of Europe.

Fret SNCF operates a two-tiered rail structure: trunk routes and local zone units. The purpose of 'trunk routes' is to industrialise production flow over long distances.

Four trunk routes have progressively been developed:

  • an Antwerp/Basel route, linking Belgium, Switzerland and Italy
  • a North-East/Savoy route between Benelux countries and Italy, and between Italy and Great Britain
  • a South-East route linking Benelux, Germany and Spain
  • an Atlantic route linking Great Britain to Spain, and the Benelux countries to Spain.

SNCF Freight operates two hubs in France which concentrate the traffic flow, grouping trains coming from different yards, and sending them to destination yards, the PNIF (Paris Hub) and the PNEU (European Hub).

The 'local zone' units are responsible for grouping and despatching wagons in neighbouring zones. Units include; Rhone-Alps, Western France, the Mediterranean, Burgundy, North-Picardie, Centre Atlantic and the Paris region.

Fret SNCF European Network
Major Subsidiaries Novatrans, VFLI, Lorry-Rail, Naviland Cargo, Captrain
Tonnage Transported 23bn tonnes/km per year
Wagons Transported 220,000 per year
Wagon Fleet Size 27,000
Warehouses 15
Warehouse Area 140,000 sq m
Source: SNCF
© 2013 Transport Intelligence
Operations: STVA
Founded in 1950, Groupe STVA is a French company specialised in finished vehicle logistics in Europe

The company is majority owned by SNCF and is categorised as part of the SNCF's transport and logistics division, SNCF Geodis.

Along with Geodis, it is the only company classed as a part of SNCF Geodis' Global Offerings segment.

It has a strong presence among automobile manufacturers and renters throughout Europe and transports approximately 6m vehicles a year.

It has nearly 3,600 wagons and 800 trucks and has around 2,500 employees. The company also has a network of depots and PDI facilities. 

Its own rail fleet is complemented by a network of alliances in Belgium, Spain, Germany, Poland and Italy with finished vehicle logistics companies.

STVA Logistics Centres Network
Source: STVA
© 2013 Transport Intelligence
Operations: 2012 News

2012

October - Fret SNCF announced that it had enhanced its multi-lots multi-clients, single wagon offer and extended it to international routes.

The extended service would connect beyond France's borders on the rail line connecting Woippy (France) and Antwerp (Belgium), ensuring an end-to-end service. From early 2013, Fret SNCF would also provide this end-to-end offer for all Franco-Swiss traffic carried by Fret SNCF and CFF, its historic partner in Switzerland.

The service possibilities in France were also extended. A direct link between Lyon and Mulhouse would be operational from the end of 2012, in addition to other domestic routes.

The overall expansion of the service would supplement the 23 existing links already offered. The increase in the number of destinations responded to the needs of manufacturers, particularly those in the chemical industry.
July - Geodis Supply Chain Optimisation (GSCO) announced that it had obtained the Chartered Institute of Purchasing and Supply (CIPS) certification. CIPS certification was recognised as a sign of excellence in purchasing and cost optimisation. GSCO stated it was the only 4PL operator to have fulfilled the approval criteria of the Chartered Institute of Purchasing and Supply.

To achieve the certification, GSCO had invested in improving the standardisation of its global subcontracting procedures in respect of ethical rules and sustainable development policies. CIPS spent a year examining GSCO's purchasing processes, particularly in supplier selection and calls for tender. Renewable every three years and audited annually by CIPS, the certification requires regular internal control.

Commenting the Chief Executive Officer of Geodis, said: "This ambitious certification policy has enabled us to compare our purchasing practices with the most stringent international rules and thereby reassert the complete independence of GSCO's purchasing policy within the Geodis group".
May - Geodis Wilson announced it was expanding its trucking operations to include China, an extension of its existing routes through Singapore, Malaysia, Thailand, and the Indochina region. The full cross–border route between Singapore and China covers a total distance of 5,950 km and has a lead–time of 6–7 days.

Customers would be able to choose between full container load (FCL) services, or less than container load (LCL) services. FCL containers would be sealed from door–to–door and opened only if required by border customs, while LCL containers would be consolidated at Geodis Wilson facilities along the route, and fed into the main road network by regional trucks.

"One distinctive element of our cross border trucking product is the range of security measures. They enable us to monitor and protect cargoes and help to ensure that our clients' goods can be delivered on time. This includes solid contingency mechanisms, for instance in case of severe weather, complex customs clearing or for accident prevention", said Geodis Wilson's Regional Director Cross–Border Trucking.
Operations: 2011 News

2011

November - Geodis Wilson announced that it would open a distribution centre in Thailand which would be operational from the beginning of 2012.

The 96,900 sq ft facility is located in Sri Racha, 75 km from Bangkok Suvarnabhumi International Airport, and 15 km from Laem Chabang Port.
September - Geodis announced that, as of October 6, it would begin making deliveries for Carrefour in Lille using a hybrid refrigerated trailer truck. A new initiative in Geodis' Distripolis urban logistics system, this first-of-its-kind service would mean deliveries to the six Carrefour stores in the Lille city centre would be both cleaner and quieter.

In May 2010, Geodis teamed up with Renault Trucks to test a unique hybrid vehicle equipped with a cryogenic refrigeration unit. The vehicle was proposed to several customers for testing, and the retailer Carrefour was first to request the new vehicle. A perfect fit with Carrefour's sustainable development strategy, this 26-tonne hybrid truck that complied with the Euro 5 standard would begin delivering goods to Carrefour stores in Lille starting in October.

The thermal engine–electric motor combo in hybrid trucks lowered diesel consumption by an average of 20%. This represented an annual reduction in CO2 emissions of 10 tonnes. The use of liquid nitrogen, a non-toxic substance that emitted no CO2, as the refrigeration fluid made this vehicle even more environmentally friendly. This vehicle also had separate transport compartments, so both fresh produce and dry goods could be delivered. In addition, the cooling unit lowered the temperature twice as fast, making the truck particularly useful for the transport of vegetables.
July - Geodis Wilson announced it was opening an 8,500 sq m distribution centre in Jebel Ali South within the free zone of Dubai, United Arab Emirates. The new distribution centre marked a strategic step in the company's global growth plan: extending its freight forwarding services to a full-service contract logistics model in the Middle East region.

"The demand for contract logistics is very high," said the Managing Director Geodis Wilson UAE. "Most companies trading via or in the Middle East need a hub solution for their business, and Dubai is undoubtedly the regional choice, with very good onward connections. Geodis Wilson runs its own freight network to cope with this demand, including trucking services between the various countries and a 24-hour on-line customs service."

Geodis Wilson invested about €1m into the Jebel Ali distribution centre, now providing a full range of supply chain solutions, including warehousing services, inventory, labelling, bar-coding, packing pouches, blisters, vendor management as well as domestic and cross border distribution.

New business included the handling of IBM hardware and spare parts for dispatch to other points in the Gulf region; including Abu Dhabi. For another global customer stationery and personal care products would be hubbed through the new centre, arriving from France in containers for storage and then distributed to 16 countries in the region including Saudi Arabia, Bahrain, Oman, Kuwait, Qatar, Pakistan, Jordan and Syria.
July - Geodis Wilson announced the launch of a new vertical business unit dedicated to serving the logistics needs of luxury hotels and resorts and their suppliers worldwide. Geodis Wilson would provide dedicated integrated logistics solutions to this fast-growing market.

"Geodis Wilson expects to become a single-source shipping solution for many of the top-tier companies in this market," said Geodis Wilson's global director Luxury Hotel & Resort Logistics. "These highly recognisable brands and their entire supplier base want a dedicated logistics partner. We created this new business unit to ensure they receive the white-glove services they expect and require."

Geodis Wilson's Luxury Hotel & Resort Logistics service would be operated by dedicated teams and project managers, regional competency centres and a global hotel logistics control tower, providing a variety of global and domestic freight services, including: freight consolidations, insurance, customs brokerage, warehouse services, FF&E installation, OS&C delivery, customised freight control management and dedicated consultation.
June - Geodis Calberson expanded its services in the UK with the opening of a new logistics facility in Birmingham to handle inbound and outbound European cargo for its premium Eurotop and Eurofirst services.

The opening of the Birmingham international facility coincided with the launch of the company's new daily run to and from Italy that offered customers 72 hour door-to-door services for Eurotop and Eurofirst.

The new facility would handle all the company's import and export freight movements that were previously managed by Watford Gap.

The company said that Watford Gap would continue to handle the Fortec Distribution Network, the palletised side of Geodis Calberson's operations in the UK.

"This move allows both the UK pallet business and our European services to continue to flourish. These are exciting times for Geodis Calberson," said Geodis Calberson MD Jamie Cuthbert.

The Birmingham hub is built over 1,860 sq m on four acres of land and is located on the Middlemore Industrial Estate close to UK's motorway network, it offers storage space for around 1,500 pallets.
Operations: 2010 News

2010

December - SNCF Geodis was implementing a new global Transport Management System for its Freight Management division, Geodis Wilson. The new platform would be developed together with CargoWise, a global leader in logistics software. In December, both companies signed a contract to develop and implement the new system within the next three years. 

The new TMS was based on ediEnterprise, CargoWise's award winning platform. It would gradually bring operational, financial and customer relationship management processes under one unified umbrella, resulting in faster and increasingly transparent information flows to the customers as well as increasing operational efficiency. The underlying single-file-concept linked all relevant information together in one consistent database. It would be launched as of next year, starting in Europe and Asia-Pacific, and the full implementation would be part of a three year development process. In total, Geodis Group would be investing €20m into this project.                         

"We were not only looking for the best, currently available system in the market. More precisely, we were focusing on the future capabilities of different products and service providers, their flexibility and the potential speed of innovation. In other words, we were looking for a partnership that enables us to position Geodis technically ahead of the market, both in the near future and also in the long run", said the Chief Information Officer at Geodis Wilson. 

CargoWise CEO said: "Our product matches Geodis's vision of the 'single file' which at CargoWise we call OEDO or Only Enter Data Once. We recognise that this partnership will continue to drive our innovation, dramatically broaden the global footprint of our product and business and give substantial benefits to all parties involved."
August - Geodis Wilson expanded its Atlanta operations into a new, larger facility encompassing 84,000 sq ft (7,800 sq m).  The Atlanta operation provided air freight, ocean freight, customs brokerage, domestic forwarding, warehousing & distribution and other freight management solutions.  Geodis Wilson Atlanta was also a primary US air freight gateway to Europe, with regular consolidations.  "The newly expanded Atlanta facility will be a model for future growth and expansion in the US market for Geodis Wilson," commented the Chief Operating Officer Eastern USA. 

"The well established trend in manufacturing growth throughout the Southeast has been apparent for quite some time with increases in export and import activity," said the newly appointed Southeast US Regional Manager and acting Branch Manager for Atlanta.  "With our newly expanded warehouse and gateway, and with our enhanced security and compliance programmes, we are in a prime position to service the market's continually growing freight transportation needs in the critical industries throughout the area including automotive, industrial manufacturing, fast moving consumer goods, aviation and furniture." 

Geodis Wilson had also invested in the necessary infrastructure in Atlanta to become one of several new Certified Cargo Screening Facilities (CCSFs) in the United States. This investment provided Geodis Wilson with the equipment, facility, security enhancements and trained staff in order to provide shippers with a fast, efficient, secure, and predictable cost option for screening freight in compliance with the TSA's (Transportation Security Administration) new 100% cargo screening mandate for all passenger aircraft. 

Geodis Wilson Atlanta served as the airfreight gateway for the entire region, including Georgia, South Carolina, North Carolina, Tennessee, Alabama, and parts of Florida and Virginia.
March - Geodis Wilson has opened a new airfreight office in Dubai.  In the first of three service developments this year in the United Arab Emirates, global forwarder and logistics services provider Geodis Wilson has opened a new airfreight office in Dubai to support increasing demand for this service mode as well as its advancing sea-air product.  Based in Dubai's busy Cargo Village, the new office will employ 22 people.

The new facility will handle freight from up to ten inbound flights daily - mainly from Europe and the Far East - as well as sea-air cargo originating as ocean freight from the Geodis Wilson network in the Far East, which is switched from the nearby Jebel Ali port to air cargo on Dubai flights bound for European destinations. The new office will also be involved in customs clearance, general forwarding, supply chain management, warehousing and customs clearance activities.

Geodis Wilson, which is ranked among Dubai's top ten forwarders, employs a total of 70 people in the Emirate and has its regional headquarters at nearby Jebel Ali, where ocean freight activities are also carried out.

Early indications suggest that Geodis Wilson"s year-on-year activity in Dubai is currently growing at more than 10 per cent across all modes. There is particular strength in the sea-air business, which allows shippers to save on the cost of a total airfreight movement from the Far East to Europe, while offering substantial transit time savings over an end-to-end ocean freight movement. Sea-air demand is particularly strong from the textile and hi-tech sectors.

The second significant milestone for Geodis Wilson in the UAE will be the opening of an Abu Dhabi office during the second quarter. Within this region, the company also has offices in Qatar, Kuwait and Saudi Arabia. Later this year, a third landmark event will be the opening of a new regional headquarters in Jebel.
Operations: 2009 News

2009

May - Global freight management company Geodis Wilson has announced the opening of a new dedicated warehouse for pharmaceutical products at Charles de Gaulle Airport in Paris.  The new facility will be opened on Wednesday 3rd June.

The new warehouse is dedicated exclusively to the storage and distribution of pharmaceutical products, and complies with all relevant protocols and current standards in the sector. The facility offers:

  • quality and integrity control
  • truck temperature check
  • X Ray security checks
  • temperature controlled transit storage
  • shipment preparation
  • export customs clearance formalities
  • handover to airlines
  • inventory, reverse management and quarantine facilities 

Pharmaceutical products can be stored in a temperature-controlled area divided into two sections, offering one area with a temperature of between +2 and +8, and another with temperatures between +15 and +25◦C. In addition, there is a dedicated area for pharmaceutical goods at ambient temperature.

There is a high degree of security at the Geodis Wilson warehouse, which gives access only to authorised individuals, and is constantly monitored by CCTV. The warehouse is located in the bonded area of Paris Charles de Gaulle airport, and is available to all modes of transport. 
June - Following investment at locations in Amiens, Chalons en Champagne, Milan and Paris Bonneuil, Geodis Calberson announced that it had made a further investment in property by opening a new facility for the France Express network in Lyon Corbas.

The secure platform, dedicated to national and European express, was located south-east of Lyon, next to the A46 motorway. The site covered an area of 12,000 sqm with 168 gates and could process and sort 2,400 parcels per hour.

The platform would provide daily lines to many destinations throughout Europe as well as enabling next-day delivery before midday to 36,000 cities in France, with 90 daily departures.

"Through this investment, Geodis Calberson and France Express confirm their commitment to strengthening their leadership in Express for the manufacturing sector," said the Vice-President, Groupage Division.
October - Global freight management company Geodis Wilson has launched the US headquarters of its specialist Industrial Projects Division in Houston to be closer to the decision-making centers of a growing client base that needs global transportation to site of major generators, turbines, large volumes of pipes, mining and construction equipment and desalination plants, along with associated support and control.

Geodis Wilson already meets the demands of oil and gas, engineering, drilling and engineering procurement contractors (EPCs) based in the Houston area, providing a one-stop shop for transport management by truck, barge, air and ocean, as well as offering order expediting, customs brokerage, storage and inventory functions, materials management and distribution.  It serves as a national center of excellence for the US and will service projects through other areas, including the eastern seaboard and Pacific coast.

Essential in serving this sector is provision of an industrial packing capability, which Geodis Wilson’s Industrial Projects Division meets through its own 65,000 sq ft (6,000 sq m) packing and temporary and long-term storage warehouse close to Houston Airport, complete with two acres of outside area for marshalling heavy plant and project equipment. Supplementing this facility, a mobile packing team will service projects at the docks where necessary.

In tandem with the technical and commercial capabilities required, the division also provides the wider expertise and support now demanded, ensuring control of infrastructure at both ends of the operation.

Geodis Wilson sees further potential development in the industrial projects activity, which has been strengthened by the acquisitions of TNT Freight Management and Rohde & Liesenfeld, attracting raft of new clients worldwide. Revenues have doubled over the past three years and further expansion is anticipated over the next five years.

The Houston office, which has grown its staff from just 15 at the start of 2009 and is expected to comprise a team of 80 by the end of 2010, joins a global Industrial Projects Division network of competence centers in 34 countries. Other scheduled launches include Abu Dhabi, Dammam and Rio de Janeiro. Algeria and Libya have also joined the network.

Employees Expand

Employees    
2012 30,000
2011 30,000

Products And Services Expand

Geodis

Geodis Wilson - Freight Forwarding

    • air freight forwarding
      • tailored to customer need
      • various speed/cost options available
    •  sea freight forwarding
      • less-than-full-container shipments (LCL)
      • full container loads (FCL) for standard, refrigerated or oversize containers
    • combined air and sea forwarding
      • available across Asia, Europe and the Americas
      • 30% to 50% faster than a standard sea shipment
      • 30% to 50% cheaper than air shipments
    • value added services
      • customs clearance
      • vendor management
      • KPI management
      • warehousing
      • pick & pack
      • cargo insurance
    • sector specific services
      • automotive
      • aerospace
      • high tech
      • industrial
      • marine logistics
      • healthcare/pharmaceutical
      • consumer/retail
    • project cargo expertise
    • all services available door-to-door.

Geodis Calberson - Groupage and Express

    • groupage
    • express
    • chartering
    • specilaised distribution
      • storage
      • removals
      • rental.

Geodis Logistics - Contract Logistics

Inbound Logistics

      • supply management
      • management of component and finished products inventory management stocks
      • VMI
      • assembly
      • customisation and roll-out of high-tech equipment
      • value added services
      • lineside deliveries
      • production line deliveries.

Outbound Logistics

      • stock management
      • cross docking
      • pooling of resources
      • order picking
      • delayed differentiation
      • value added services
      • labelling/stickering
      • management of unsold items
      • reverse logistics.

Sector Specific Services

      • high tech
      • FMCG/retail
      • healthcare & cosmetics
      • automotive
      • industrial.

Geodis BM - Road Transport

Service Overview

      • part and complete batch
      • upstream and downstream
      • intersite shuttle services
      • road and rail combined transport
      • temperature controlled transport
      • chemical conditioned transport
      • finished vehicle transport
      • bulk gas transport
      • bulk chemical transport
      • milk-run service
      • liquid food bulk
      • concrete mixers.

Sector Specific Services

      • consumer/retail
      • industrial
      • chemical
      • automotive
      • press.

Geodis Supply Chain Optimisation

Fret SNCF

  • rail freight transport.

Sectors Served

    • agriculture
    • quarry products
    • automobile
    • coal and steel
    • chemical
    • intermodal transport.

Akiem and Ermewa

  • wagon and locomotive leasing.

STVA

  • automotive logistics/finished vehicle logistics services.

Mergers Acquisitions Expand

Mergers Acquisitions: 2012 News

2012

April - Geodis gained approval to took over part of Sernam's activities.

The Commercial Court of Nanterre handed down a favourable opinion on Geodis' offer on a partial takeover of Sernam activity. The Court considered that all the conditions had been met for the successful completion of the transaction.

The activities in question were expected to be integrated in May within the Geodis Calberson network, which, under its own brand, would then handle shipments to Sernam customers.

The integration of part of Sernam would enable Geodis Calberson to strengthen its position in France.

Chairman and CEO of Geodis, said: "The favourable decision of the commercial court underlines the industrial relevance of our takeover project".

Sernam Services, a groupage and express parcel company, was placed in receivership on 31 January 2012.
April - SNCF Geodis acquired MF Cargo, a transport business serving FMCG and retail clients in Hungary. MF Cargo was complementary to Geodis Hungary, the company previously served as a transport subcontractor for Geodis.

Geodis announced that the acquisition would provide it with a "true national distribution network in Hungary" and improve its capabilities for transporting international flows among the countries adjoining the European Union. The company hoped that the acquisition would enable it to become the local leader in FMCG and retail logistics.

MF Cargo had estimated revenue of €21m in 2011. The company had a fleet of 154 tractors and 169 semi-trailers and employed 212 people.

The CEO of Geodis, concluded: "I am very pleased with this acquisition. It advances our strategic priorities and enables us to broaden our capabilities with specific expertise and assets that will attract key clients in Hungary and more generally in Eastern and central Europe."
Mergers Acquisitions: 2011 News

2011

September - Geodis Ciblex, part of Geodis' Groupage and Express division Geodis Calberson, acquired GLS France's overnight delivery business, InNight.

InNight specialises in overnight deliveries for the optics and spare parts sectors.

It provides delivery of documents, mail bags, parcels or small containers to secure drop-off points before 9am.

Geodis Ciblex and GLS France were to work together to transfer the operation over to Geodis, which was expected to take effect November 26.

Geodis said adding the new unit would help broaden its offering in the French overnight delivery market.

Jean-Louis Demeulenaere, CEO of the Geodis group, said: “This transaction significantly boosts the existing expertise of Geodis Ciblex in overnight deliveries across France, especially through its H Night offering and will enable us to accelerate our development in the optics and spare parts sectors.”
September - The Geodis Group strengthened its position on the healthcare market and consolidated its offering with the acquisition of the pharmaceutical pre-wholesaler Pharmalog.

Pharmalog was a pharmaceuticals logistics and distribution company based in Val de Reuil in Normandy, France. It had 50,000 sq m of storage space and a workforce of 150. Pharmalog had revenue of €18m.

The new entity would carry out a full range of value-added operations: sales administration, customer debt recovery, repackaging, management of free medical samples, etc. It had nine specialised platforms in France (warehouses, clean rooms, controlled temperature premises, etc.) a workforce of almost 500 employees.

In the long term, this organisation would be deployed Europe-wide, based on operations already carried out for the health sector by Geodis Logistics in Benelux, Ireland and Italy. At the same time, Pharmalog customers would gain access to all the dedicated services in logistics, distribution and international transport delivered by the Geodis Group to healthcare professionals.

The CEO of Geodis, said: "This new vertical offering places Geodis among the top three players in healthcare logistics in France, as well as opening broad new prospects in Europe. This organisation will bring real benefits for customers since it is a close fit with the services developed by the cross-cutting entity Geodis Global Solutions and the other divisions of the Geodis Group: Groupage & Express, Contract Logistics, Freight Management and Road."
June - Geodis Wilson, the freight forwarding arm of SNCF Geodis, acquired US based One Source Logistics, a non-asset based freight broker that specialises in providing domestic transportation services focused on truckloads and less-than-truckloads.

"Taking over One Source Logistics is a first step in the company’s growth strategy in the U.S.," said Philippe Gilbert, Geodis Wilson’s executive vice president. "With the extended link to domestic services in North America we are able to satisfy the needs of a wide range of our air freight and ocean freight clients."

Geodis Wilson CEO Jean-Louis Demeulenaere said the company planned to at least double its freight forwarding business in the coming five years through external and organic growth.

Demeulenaere said the company’s focus on the American market had already proved a success with revenue of $1bn across the entire region.

SNCF Geodis did not reveal the price of the acquisition.
Mergers Acquisitions: 2010 News

2010

November - SNCF Geodis, the transport and logistics division of the SNCF Group, has acquired the shares of Caisse des Depots et Consignations and Vinci Concessions in Lorry-Rail, increasing its holding in the company from 12.5% to over 50%.

Founded in 2007, Lorry-Rail transports unaccompanied semi-trailers and swap bodies via rail motorway between Perpignan and Luxembourg. The 1,050 km line connects the Bettembourg and Le Boulou platforms.
July - The European Commission (EC) approved, in accordance with the EU Merger Regulation, the acquisition by Geodis of sole control of Giraud, an international road freight group.

In a statement issued last week, the EC said it had concluded that the transaction "would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it".

The EC explained that Geodis was a global logistics chain and goods transport operator active mainly in France. It was a subsidiary of SNCF-P, a holding company which managed SNCF's shareholdings, particularly with regard to rail freight transport, combined transport, freight wagon hire, resource management and port handling. Giraud was an international road freight group active in commissioning freight forwarding, logistics and road freight services in Europe.

"By the notified transaction, Geodis aims to acquire sole control of the four areas of the Giraud group's activity (Central and Eastern Europe, steel industry, northern Europe and France, and southern Europe). There are no significant overlaps between the parties' activities," stated the EC.

"The proposed transaction will result in a vertical relationship between, on the one hand, SNCF's rail freight transport services and, on the other, Giraud's land‑based freight forwarding activities (including freight forwarding by rail and road).

"The Commission has examined the effects of the proposed transaction and confirmed that there would be no incentive for SNCF to restrict access to its rail transport services following the merger because Giraud specialises in commissioning road transport, and because there are strong competitors in the freight forwarding sector who are important clients of SNCF."

Giraud became a part of Geodis BM, Geodis' road freight division.
July - SNCF Geodis wholly acquired Ermewa, a major European player in wagon rental, operation and maintenance for the transport of hazardous and non-hazardous liquid, gas and solid products.

At the time of the completion of the acquisition, Ermewa owned a fleet of 60,000 wagons, 23,000 containers and 16,000 small containers.

Ermewa became part of the Asset Management entity of SNCF Geodis.
April - Geodis' acquisition of French parcels company Ciblex, announced on 17 March, was closed on 22 April, with Ciblex becoming an integral part of the Groupage Division of the Geodis group. Ciblex will provide the Group's new "0-30 kg parcels" network.
The parcel service would broaden the Group's range of small parcel solutions, especially in e-commerce, health, optics, high-tech products and spare parts, sectors in which Ciblex plays a leading role. With a 700-strong workforce and more than 700 subcontractors, Ciblex was a specialised autonomous network able to manage late collections, up to 8 pm in Ile-de-France, for next-day deliveries before 8 am, 9 am, 10 am or midday, depending on the service required. The agreement will also round out the Geodis transport offering in Belgium.
March - Following the acquisition of Giraud's Steel division and Central and Eastern Europe division in July 2009, Geodis had entered into exclusive negotiations to buy its two remaining divisions, Northern Europe and Southern Europe (full and partial truckload road transport). The company said this would allow it to expand its European coverage, particularly in Spain. Giraud was the third-largest road freight carrier in Spain, and a major player in France.

Geodis commented that the transaction would be concluded very quickly, after employees had been informed and after approval by the competition authorities, who were expected to rule on the acquisition by the end of the first half of 2010.

"Giraud's corporate culture is close to ours," said the director of the Geodis Road division. "It has a centralized organization, strong culture of operational excellence and management tools that are similar to ours. These factors, along with our successful experience with the Steel division and Central and Eastern Europe division, augur well for a successful integration."

"For Geodis BM, this acquisition is an opportunity to build a true European network and to play a full role in the Group's global end-to-end offering. With this new network, the revenue of Geodis BM will exceed one billion euros, based on the expertise of its 5,000 employees," concluded the CEO of Geodis.

In addition in early March Geodis SA announced the acquisition of BSL Bertola Servizi Logistici S.p.A. Based in Pavia, Italy, BSL provides warehousing and logistics services to the consumer goods, textiles and automotive industries. Bertola provides contract logistics services from its base in Veneto, Italy. Terms were not disclosed.
March - Geodis acquired Ciblex, France's fourth-ranked groupage operator and a specialist in small parcel express delivery. Geodis said that it was pursuing several objectives through the acquisition.

It wished to:

  • reinforce its position in the parcel service, a market that had developed considerably over the last few years mainly with the growth of e-commerce in which Ciblex was a leading operator.
  • develop its technical expertise specific to parcel processing, relying on an independent network of more than 700 service providers.
  • improve its value-added services offer that met the needs of the Group's customers mainly in the sectors of e-commerce, healthcare, optical, high tech and spare parts.
  • complete the Geodis transport network in Benelux.

The director of the Groupage/Express division, said: "I would like to welcome the Ciblex teams, who share the same values, quality of service and respect of commitments, which are vital for our customers."

The deputy CEO of Geodis, concluded: "I am very pleased with this acquisition, which is part of our strategic priorities and enables us to enrich our global European service offering with specific expertise that will attract our international customers."
March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

"With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

Key figures for Bertola (at the time of the acquisition):

  • 2008 revenue: €60.9m
  • Italy’s tenth-largest provider of contract logistics
  • 92 employees
  • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
  • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.
Mergers Acquisitions: 2009 News

2009

September - The SNCF and Eurotunnel groups had teamed up to acquire Veolia Cargo, the rail freight businesses of the Veolia group. Veolia Cargo, Europe's leading private rail freight operator, had a particularly strong presence in Germany, Benelux and France. Consisting of 20 subsidiaries, it employed nearly 1,200 people and reported revenue of €188m in 2008.

The SNCF group had taken over the rail companies based in Germany, the Netherlands and Italy, while the Eurotunnel group acquires the French branch of Veolia Cargo (Socorail, Veolia Cargo France, Veolia Cargo Link and CFTA Cargo).

The transaction strengthened SNCF's rail network in Europe, especially in the Netherlands and Germany, where Veolia Cargo was the leading private operator, notably through its subsidiary Rail4Chem.

The Deputy CEO of SNCF and head of the SNCF Geodis division, said: "This acquisition is part of our drive to develop rail freight, notably by intensifying international links for full train loads in Europe. For example, we will be able to directly operate trains between Rotterdam and France to meet the growing needs of our customers in this area."

The activities acquired in France by Europorte 2, Eurotunnel's specialist rail freight subsidiary, covered a broad and integrated range of services, including domestic and international rail freight traffic, local freight services on secondary lines, and services for industry.

These services were complementary to and non competitive with Eurotunnel's existing services. The new activities would support growth in the group's rail freight business. In 2008, with a workforce of roughly 600, they generated revenues of around €50m. The Chairman and CEO of Eurotunnel, commented: "I am very pleased that our offer, presented in partnership with the SNCF group, was selected by Veolia. It marks a decisive step in the development of Europorte 2 and the sustainable growth of Groupe Eurotunnel. From a strategic point of view, the rail freight sector holds great potential for the future, particularly in light of environmental considerations."

The transaction was expected to be completed by the end of the year, following approval from the competition authorities. 
 July - Geodis Calberson has signed a framework agreement to purchase the business of Cool Jet, a major player in the domestic groupage and chartering market in France. The actual transfer of activities will take place on October 1, subject to the approval of competition authorities and Labour groups. Thanks to Cool Jet's portfolio of 5,000 active customers, Geodis Calberson is acquiring the additional volumes needed to ramp up its domestic groupage network to full capacity. 

Included in the acqusition are two buildings located in theParisregion (Gennevilliers) and the North region (Lesquin). 

In conjunction with this acquisition, Geodis took full control of Prisme, an Economic Interest Group in which Cool Jet had a 50% stake. 

"This acquisition contributes to a dynamic of growth that we want to maintain in each of the Geodis divisions. In particular it strengthens our leadership position inFranceand will accelerate the development of our European groupage activities," said Geodis. 
March - Geodis confirmed its intention to acquire part of the activities of another French transport/logistics provider, Giraud International*, namely the metallurgy unit and the Central and Eastern Europe area division.

"The two entities provide essential synergies with Fret SNCF and Bourgey Montreuil," said Geodis in an official company statement. "Once the acquisition is definitive and the competition authorities have given their approval, the metallurgy unit will be integrated in the full Truck Load division of the Geodis group and the Central and Eastern Europe division in the Logistics division of the Geodis group."

Geodis said the businesses concerned were worth over €100m in revenues and corresponded with the SNCF group's strategy of multimodal development. "Sernam has not been discussed," it added.

* Giraud International is a limited liability company headquartered in France. According to the company's corporate website, its majority shareholder is Butler Capital Partners, which is also the shareholder of Sernam.

January - Geodis and the Belgian service provider Nova Holding are creating a joint venture that will provide logistics services in the port of Antwerp. Geodis Logistics, the logistics Division of the Geodis group, is signing a joint venture with the logistics service provider Nova Natie, so as to set up a new entity dedicated to the development of logistics activities in the port of Antwerp. 

The new common entity Geodis Nova Logistics resulting from this joint venture will aim at providing value-added logistics services directly in the port of Antwerp: control of products, labelling, postponement, assembling, kitting, packaging, co-packing,… They will namely concern the manufacturers and distributors willing to optimize their export and import channels in Europe, via the port of Antwerp.
Mergers Acquisitions: 2008 News

2008

December - SNCF had significantly ramped up its apparent push to try and become as important a player on the global logistics stage as German counterpart and rival Deutsche Bahn.

The group's Transport and Logistics Division business SNCF Geodis, which it bought earlier this year after previously being its main shareholder for many years announced it had acquired IBM's internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi-year outsourcing contract.

Through that contract, stated Geodis, it would be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

"This agreement is strategic to reinforce Geodis' position among the world's leading logistics providers capable of delivering end to end solutions to its global clients," claimed Geodis Deputy CEO.

"With this partnership, we will strengthen the skills and expertise required to service both IBM's and our existing and future clients' core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio."

Geodis said it was increasing its investments outside Europe and the new acquisition complemented the company's existing teams. "By leveraging IBM's employees in more than 50 countries across the US, Canada, Latin America, Europe and Asia Pacific, Geodis' service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion," it claimed.

Geodis said the IBM transaction, which was expected to close in the first quarter of 2009, was subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the EC (European Commission) of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.

SNCF claims that its Transport and Logistics Division is currently the fourth-largest transport and logistics operator in Europe, with annual revenue of €8.5bn.
June - Geodis Wilson, the forwarding division of French European logistics group Geodis, strengthened its growing business in the UK with the acquisition of Oughtred & Harrison Shipping. Geodis Wilson said that the move would boost its ocean export business and extend its global network coverage in China and Benelux.

O&H Shipping was an air and sea freight forwarder with almost 100 employees, mainly based in northern England, but also in Belgium and China. Serving more than 1,900 customers, O&H would deliver about £35m (€44m) to the Geodis group's net sales.

"The O&H acquisition is an important step in our long term growth ambition and strengthens our presence in the market," commented Geodis Wilson. "The eventual merger of our two companies brings us closer to achieving our objective of being a top five freight management company in the UK. Both from a geographical and from a functional point of view, there are no essential overlaps, which will lead into a straight integration process that will be completed within the next 12 months."

According to Geodis Wilson, the combined businesses at current trading will generate over £90m (€112m) in net sales. Together, it added, they had 290 employees based in 14 locations across the UK.

 

Alliances

Sister Concerns

Other sister concerns

Major Contracts Listing Expand

Major Contracts: 2013 News

2013

June - Geodis Logistics, the logistics Division of SNCF Geodis, announced it would manage the road transport and logistics activities of LG Electronics in Italy for the next three years. LG Electronics provided consumer electronics, mobile communications and home appliances.

The project, which involved 40 people, would be operated from Castel San Giovanni (nearby Milan), where Geodis Logistics owned a 250,000 sq m logistics park. Geodis stated that more than 144,000 cu m of LG products would be managed at the site.

Under the terms of the contract, Geodis would provide warehousing, inbound and outbound distribution as well as reverse logistics services including returns management, repair, refurbishment and dismantling of stock.

"Geodis Logistics, thanks to the experience it has gained working side by side with leading high technology brands, has proven to be the most suitable partner for LG Electronics, with whom we signed an important three]year contract" commented the Geodis Logistics CEO.

He added, "Thanks to our know]how, we are able to offer our client LG a great amount of flexibility in order to follow enduring market evolution and the compression of products life. Such experience allowed us to integrate our offer with reverse logistics services, thus ensuring the correct management of the end of products life cycle."


 

April - SNCF Geodis had signed a three-year contract with Heineken to handle its logistics flows across France. Geodis already managed the transport of 30% of Heineken goods to customers and between the brewer's sites (Marseille in the south of France, Schiltigheim in the east of France and Mons-en-Baroeul in the north of France).

In a further reflection of the enhanced working relationship between Geodis and Heineken, the contract included part of the logistics flows for France Boissons, a Heineken subsidiary.

Geodis BM stated that the the strategic new contract marked its determination to develop multi-modal transport to tie in with the Heineken group's environmental policy. As part of that drive, Geodis would make significant use of combined rail-road transport.

In addition, Geodis BM had rolled out a singular multi-business coordination system to better manage anticipation stocks, seasonal variations and promotional periods through a new Transport Management System. The system covered transport order dispatch, operational service providers, service monitoring, the management of delivery appointments and load capacities by the shipping sites (breweries and warehouses), the management of last-minute orders, and the management of quality reporting and the performance of each person involved.

The Managing Director of Geodis BM, said: "We have been working alongside Heineken since 2008. Our key priority was to bring our customer a strategic flow management solution that fulfils its expectations and corresponds to its future needs. We are very proud to have won the trust of Heineken and to have made Geodis BM the leading partner of its supply chain in France."


 

March - SNCF Geodis signed a contract to deliver spare parts for Liebherr Logistics, the global construction machinery manufacturer and operator, in France.

The agreement covered the shipment of spare parts from Germany for delivery to all parts of France. Geodis had designed a made-to-measure solution in partnership with Liebherr, to enable its customer to ship spare parts from Germany to depots and customers in France in just 24 hours. This solution, which relied on the France Express network, also concerned the delivery of spare parts directly to worksites, such as the high-speed rail worksites currently in progress.

Every day, six Geodis vehicles would leave the Liebherr warehouse in Kirchdorf an der Iller in Bade Wurtemberg, southern Germany, for the three express platforms operated by Geodis in Gennevilliers, Nancy and Corbas. The parcels were delivered the next day from these platforms to all parts of France.

The parcels shipped comprise spare parts for hydraulic shovels (shovel arms, mechanical and electronic parts, hydraulic cylinders, windows and windscreens). Some 230 parcels weighing between 1 kg and 1 tonne were shipped daily.

On signing the contract, the Vice-President, Groupage and Express Geodis, said: "The trust placed in us by Liebherr highlights the capacity of Geodis to develop solutions tailored to specific needs, notably in terms of service quality and delivery times. The density of our network enables us to meet significant logistics challenges, as for Liebherr".


 

February - Geodis Wilson, SNCF Geodis' freight management division, signed a two year contract to manage the global logistics operations for international luggage manufacturer, Delsey.

Geodis Wilson would implement a fully integrated logistics service with management of intra-Asia freight services through Vietnam and Southern China, contractual logistics with a permanent storage volume above 15,000 cu m and Full Container Load (FCL) deliveries worldwide to France, US, Latin America, Middle East and Asia Pacific.

The Geodis Wilson logistics centre was located in Shanghai's Yangshan Free Trade Port Area. This was where 36,000 cu m of Delsey products for import and export would be handled yearly, as well as round-trip FCL trucking from Yangshan port to the distribution centre and Less Than Truckload (LTL) domestic distribution with a yearly volume of 4,000 cu m to Delsey customers in 37 cities in China.

Commenting on the contract success, the CEO of SNCF Geodis, said: “This contract highlights Geodis Wilson’s strong presence in China’s competitive transport and logistics market. Our innovative approach will allow Delsey to increase productivity, reduce business complexity and optimise their supply chains with a single, best in class logistics provider.”


 

February - SNCF Geodis won a contract with DIY retailer Castorama to provide home deliveries of website orders in France. The new, three-year contract further strengthened the collaborative effort in transport and logistics services started by the two groups in 2005.

Geodis was using a new, 24,000 sq m warehouse in Saint-Quentin-Fallavier to handle Castorama's e-commerce business and manage the cross-docking activities required to deliver the customer's stores in the Lyon area.

Of the warehouse's 24,000 sq m, 8,000 sq m were used for storing, preparing orders and coordinating transport operations for the 12,000 product references concerned by the customer's e-commerce activity. Geodis directly handled deliveries of large, value-added goods requiring special resources.

The cross-docking operations provided since 2006 by Geodis at the Corbas site in the Rhône department were transferred to the Saint-Quentin-Fallavier warehouse for the new contract, and were used to supply continuous flows to the 19 Castorama stores in the Lyon area. The new contract had led to the creation of 36 new jobs at the new platform.

To respond to the diversity of the deliveries generated by Castorama's activities, Geodis had introduced special vehicles, including crane trucks for "heavy" equipment and vans for city centres, as well as two-person teams for special home-delivery operations.

The managing director of Geodis Logistics, commented: "The trust placed in us by Castorama underscores our expertise in e-commerce logistics. Through its capacity for innovation, Geodis provides the customer with a global solution adapted to its specific needs, particularly in terms of the size and type of goods".

Geodis had also handled multimodal rail-road transport between northern France and the Lyon area for Castorama since 2011.
Major Contracts: 2012 News

2012

December - After a partnership spanning eight years, Bayer Pharma was outsourcing all its pharmaceutical logistics to SNCF Geodis under a seven and a half-year contract.

Geodis had taken over all of Bayer's laboratory logistics operations in France at the Saint Georges de Reneins site north of Lyon. This platform of around 15,000 sq m carried out logistics operations such as incoming orders, quality control, storage, unit order picking, labelling, packaging and preparation of shipments.

Working from this automated site, Geodis processed all the health products distributed by Bayer to pharmacies and hospitals in metropolitan France and French overseas territories.

A Geodis company statement said: "Authorised for pharmaceutical warehousing in Europe, Geodis Logistics is consolidating its position on the European health market, through ten health market lines (warehousing, clean rooms, controlled temperatures, etc.) on premises of 200,000 sq m at the heart of pharmaceutical technology parks, with 600 employees, and around 15 pharmacists."
October - Geodis Calberson announced it had won a contract to manage the warehousing and UK & Ireland distribution of product for Sogefi, a global supplier of original as well as aftermarket parts for the automotive industry.

The General Manager of Sogefi Aftermarket Division said: "Geodis, an established provider to the Sogefi Aftermarket Division in Europe with a proven ability to achieve high levels of delivery performance and distribution support, is now operating our aftermarket next day delivery service from a modern, future-ready distribution centre located at Lutterworth, East Midlands."

Geodis Calberson received product from Sogefi's plants in Wales and from central stock in Europe and managed stock-holding and same day order picking and dispatch. Orders were delivered next day delivery to factories across the UK, with Geodis' wholly-owned subsidiary the Fortec Distribution Network and a parcel carrier sharing the workload.

She added: "The decision to restructure our distribution service gives us a much better service level overall in the UK and Ireland. We are also confident that Geodis will ensure Sogefi achieves a robust and efficient next day service for all our distributor customers – including later order cut-off times."
October - Geodis Wilson, the freight forwarding and heavy lift specialist of Geodis, was awarded a $50m contract by steel manufacturer Cimolai to manage the transport of 16 lock gates of more than 4,000 tonnes for the expansion of the Panama Canal.

The first vessel, carrying four gates, was expected to depart in February 2013, followed by three more shipments throughout the year. The project was scheduled for completion in December 2013. The gates were part of an expansion plan initiated by the Panama Canal Authority and would most likely double the capacity of the Panama Canal by 2014.

"Being a key provider in one of the world's most demanding infrastructure projects is underlining both, our outstanding competence in heavy lift shipments as well as our significance in the global ocean freight business", commented the Chairman and CEO of Geodis Group.

The new lock chambers would enable post-Panamax containerships to cross the canal. Post-Panamax ships were more than 360 m long, about 50 m wide with a draught of up to 15 m.
June - Mattel, the global toy products manufacturer, awarded Geodis the management of its logistics and distribution operations in southern Europe. This six-year contract included the reception of 3,000 sea containers per year from Asia, customs clearance, palletising, storage and the management of 1,800 references to be distributed in France, Spain, and Portugal.

To support the contract win, Geodis was setting up a 42,000 sq m warehouse in the Distriport area of Marseilles, France. By late 2013, the total area of the distribution centre would be brought up to 60,000 sq m.

This contract was part of a long-standing partnership between the two companies, as Geodis had been managing Mattel's North Europe distribution centre in Venlo, Netherlands, as well as two hubs in Tanjung Pelapas and Port Klang in Malaysia since 2007.

Geodis's Chief Executive Officer, said: "We are proud and honoured by this expansion and strengthening of the partnership developed with a client as prestigious as Mattel. This partnership is based on our expertise in the toy products industry, the reliability of our solutions, and our ability to duplicate our operational excellence to better serve Mattel, in Europe and around the world."
February - Geodis was appointed to manage, for three years, Bosch’s logistics activities, warehouse management and domestic transport for Bosch Rexroth and Buderus.
Geodis consolidated its role in Italy as a Bosch Group logistics partner, extending the multi-annual partnership which already connected the two multinationals, with two new three years contracts, signed with the companies of the German Group.

The first one wassigned with Bosch Rexroth S.p.A., a worldwide leader in technologies for movement activation and moving control, the second with Buderus, the thermo technique division Bosch brand, that provides heating, ventilation and air conditioning.

Geodis Logistics manages Bosch Rexroth supply chain, coordinating all logistics activities pre and post production, warehouse management, transport and distribution. In more than 4,000 sq m in Cavenago, in the province of Milan, there are 18 people involved in the supply project JIT for the production line in Cernusco sul Naviglio site and finished products warehouse management. Transport to and from the production and distribution of finished products are ensured through the Geodis Züst Ambrosetti, transport division of Geodis in Italy.

The contract signed with Buderus engaged BSL Geodis in activities of warehouse management (and transport by Geodis Züst Ambrosetti) in Castel San Giovanni logistics site, in the province of Piacenza, where 6,000 sq m would be dedicated to Buderus activities. The project involves a team of 10 persons.

These new activities will further expand the partnership established between Geodis Group and Bosch Group in the divisions powertools, automotive and heating technology.

"The signature of these two new contracts confirmed Geodis Group as a national and international logistics supplier - says Aurelio Zilio, Ceo of BSL, company owned by Geodis Group. Our offer of services for the supply chain allows us to collaborate with industry leaders in their fields as Bosch who relies on us, aware of our ability to solve any specific requirements and to support them in strategic, geographical and technological developments, thanks to the most innovative and up-to-date software created by Geodis at their disposal".
Major Contracts: 2011 News

2011

October - Midwich extended its contract with Geodis Calberson.

Geodis Calberson would provides a range of services to Midwich from its new distribution centre at Birmingham for a ‘significant’ value that was recently extended to include European runs.

The Birmingham hub was pioneering a new way of operating for Geodis Calberson; a member of the Fortec Distribution Network, which in turn is a wholly owned subsidiary of Geodis Calberson. As a Fortec licensee, the Birmingham hub shifts up to 40 pallets of goods for Midwich a night to destinations across the UK.

Geodis Calberson also carries out direct runs from Midwich’s warehouses in Dudley and Erdington to their end customers in the UK, which do not go through the Fortec network.

Moreover, Geodis Calberson provides runs to France, Spain, Germany, the Netherlands and Belgium with its market leading Eurofirst and Eurotop guaranteed door-to-door deliveries in up to 72 hours to a range of European countries.
September - Computer 2000, an IT products specialist, announced its new storage partner to be Geodis Calberson.

Part of the Tech Data group, Computer 2000 is a Fortune 500 company that was making moves into the computer market in the UK. As part of the deal, Geodis Calberson would store around 600 pallets of IT goods for the company at their Magna Park base in Leicestershire.

The managing director of Geodis Calberson, Jamie Cuthbert stated: "We are delighted to be able to assist Computer 2000 in meeting their customers’ demands."

Computer 2000 would continue to store the majority of their products at their own site in Lutterworth, but any overflow would head to Magna Park, from where it would be dispatched when needed by the Fortec distribution network.

Fortec is owned by Geodis Calberson and is one of the largest pallet networks in the UK.

"We are always looking for partners to improve and extend the service we offer to our customers, and we are delighted to have Geodis Calberson working in partnership with us as we expand our operations in the UK" said logistics director of Computer 2000, Nicholas Clifton.
September - The French state transport operator’s rail freight subsidiary, Fret SNCF, suffered a major body blow, losing a long-standing contract with key customer Gefco, the logistics arm of carmaker PSA Peugeot-Citroen.

Gefco said that it was not renewing the contract “as a result of Fret SNCF’s new multi-load, multi-customer service not meeting expectations”.

Nevertheless, Fret SNCF subsidiary Captrain would continue to carry automotive components for Gefco between its plant at Vesoul, in Eastern France, and Kalaga a fast-developing car manufacturing centre in Western Russia, said Gefco.

From the new year, Gefco said it would be sharing the former Fret SNCF business between three private French rail freight operators: Euro Cargo Rail, a Deutsche Bahn subsidiary, Europorte (Eurotunnel) and Colas Rail.

The loss of one of its top-five key accounts constituted a body blow to the operator, which had seen its traffic diminish as a result of the opening-up of competition in the sector in France and compounded by the economic downturn. 

It is almost certain to compromise the company’s recovery plans which make provision for attaining a financial break-even position in 2013. The company had made heavy losses, year on year, over the past decade.

According to figures from rail network manager Reseau Férré de France (RFF), the market share of French private rail freight operators increased to 23% in the first six months of 2011, compared with 18% a year earlier.
July - Lasko Beer signed a contract with Geodis Calberson to bring Slovenian lagers and lager-based drinks to the UK.

Under the rolling contract, Geodis Calberson would transport a range of bottled drinks including the Balkans’ best selling Zlatorog lager, as well as Lasko Export Gold and Lasko Dark into the UK.

Consignments would also include the Bandidos range of lager-based drinks.

Geodis Calberson would collect the bottled drinks from the brewery in Lasko, Slovenia, which is reportedly the largest brewery in the Balkan region.

It would then arrange inbound transport, customs clearance and storage at its depot in High Wycombe. From there it would then pick orders and distribute the bottled drinks to handpicked wholesalers who would sell them into pubs.

Cambridge-based Lasko Beer was a new company set up to import the Slovenian drinks by Charles Gardner and Mark Weaver.

Sales director Weaver said: “These are very exciting times for Lasko Beer, from being virtually unknown in the UK, apart from in the expatriate Balkan community, the lagers could become hugely popular.

“And if our business takes off as we are hoping, Geodis Calberson’s contract with us could grow as well.
March - Geodis Logistics, through recently acquired Italian company Bertola Servizi Logistici (BSL), signed a six year agreement with YOOX Group for the supply of integrated logistics services to the new highly-automated global operations and distribution platform in Interporto Bologna.

Geodis Logistics would manage YOOX Group’s supply chain, coordinating the handling and shipping activities for fashion items (garments on hangers and flat garments), as well as inventory management related to footwear and fashion accessories in the storage, packaging, shipping and return management phases.

A dedicated team of 68 people would work on the project using the most modern storage systems.

“In 2011 we began a partnership with one of the leaders in Internet fashion and design retail. The agreement signed with YOOX Group confirms the role of Geodis as a global provider of logistics services at both the national and international level – said Aurelio Zilio, BSL CEO.

Major Contracts: 2010 News

2010

July - Nestle has renewed its cooperation with Geodis Logistics for a further five years. In its distribution centre in Ludinghausen, North Rhine, Geodis Logistics takes over the storage, picking and worldwide distribution of 500 different Nestle products.

Geodis plans to make further investment in the distribution centre as part of its sustainability strategy for 2010. The aim is for the expanded facility to reduce its energy consumption by 20%. In addition, it will extend the flow capacity enabling it to be able to respond to volume peaks.
June - Parrot, a leader in wireless peripherals for mobile telephony, awarded the management of its supply chain and reverse logistics to Geodis Logistics. Following a call for tender launched in 2009, Geodis Logistics concluded a contract with Parrot covering stock management, equipment customisation and reverse logistics for its products. The award involves a multi-year contract to manage the key stages of the company's supply chain.

As a result, since February, Geodis Logistics had been providing logistics services for Parrot, including customisation of equipment and assembling kits at one of its logistics hubs in the Paris region.

The products concerned were essentially hands-free systems for mobile phones and top-of-the-range multimedia products, destined to be sold in over 60,000 outlets worldwide. Services also include order management for 80 countries in the EMEA and Latin America zones, supplying the products to Certified Installer networks, automobile accessory manufacturers, non-food superstores and department stores.

"The technical complexity of our products and market considerations call for flawless distribution to our end customers," said Parrot's Chief Production and Quality Officer at the contract signing. "We are convinced that Geodis Logistics' familiarity with this sector will enable it to provide the required levels of quality."
January - Donaldson Filtration, a provider of filtration systems and replacement parts, signed a three-year contract with Geodis Calberson for the collection and delivery of up to 100 pallets per week.According to the agreement, Geodis Calberson would be responsible for the daily collection of consignments from Donaldson's UK-based factory in Leicester to all the major European markets, including France, Germany, Spain, Italy and Benelux, as well as Eastern Europe and Ireland.

Geodis Calberson would also deliver the consignments to the UK market through its Fortec pallet network and via dedicated vehicles.
Major Contracts: 2009 News

2009

June - Parrot, a leader in wireless peripherals for mobile telephony, awarded the management of its supply chain and reverse logistics to Geodis Logistics. Following a call for tender launched in 2009, Geodis Logistics concluded a contract with Parrot covering stock management, equipment customisation and reverse logistics for its products. The award involved a multi–year contract to manage the key stages of the company's supply chain.

As a result, since February, Geodis Logistics had been providing logistics services for Parrot, including customisation of equipment and assembling kits at one of its logistics hubs in the Paris region.

The products concerned were essentially hands–free systems for mobile phones and top–of–the–range multimedia products, destined to be sold in over 60,000 outlets worldwide. Services also included order management for 80 countries in the EMEA and Latin America zones, supplying the products to Certified Installer networks, automobile accessory manufacturers, non–food superstores and department stores.

"The technical complexity of our products and market considerations call for flawless distribution to our end customers," said Philippe Poussin, Parrot's Chief Production and Quality Officer at the contract signing. "We are convinced that Geodis Logistics' familiarity with this sector will enable it to provide the required levels of quality."
January - Azkar announced the signing of a partnership agreement with Geodis, part of French rail and logistics group SNCF, relating to the distribution of the latter's parcel traffic in Spain and Portugal.

In a statement, Azkar said that it would participate in that aspect of Geodis' activities on the Iberian Peninsular and islands. "This collaboration of two parcel sector leaders in their respective markets constitutes a major advance in the sustainable development of Geodis and, consequently, the Transport and Logistics branch of SNCF in Europe."

Azkar added that the agreement did not affect Geodis' forwarding and logistics divisions which would continue to operate normally.

Azkar claims to have more than 75 years of experience in the Iberian Peninsula and islands logistics sector. "Azkar offers its customers a powerful international network for the management of import and export of goods, from any origin or destination in the world outside Europe through Azkar Overseas, European traffic through Azkar Bisa International or in the Iberian Peninsula and islands where the company has 73 locations in Spain and Portugal."
Major Contracts: 2008 News

2008

October - Geodis Wilson reported that it was to manage certain air and sea freight routes for RS Components from its site in Corby, central England, to the electronic components supplier's facilities around the globe. It said a contract through to the end of 2009 had been signed by both companies on September 29.

Geodis Wilson described RS Components as a catalogue-based distributor of electronic components and industrial products, from semi-conductors to batteries, tools and measurement equipment from over 2,500 suppliers. It added that RS, which was founded in 1937, was part of Electrocomponents plc and was a global business supporting over 1.6m customers worldwide.

"For many years, Geodis Wilson has supplied in-house expertise at RS Components' site in Corby, operating from within the warehouse in a designated area and processing all freight ready for export shipment," stated the forwarding company. "The new contract extends these services to the consolidation of import products from Asia, which are to be handled by Geodis Wilson UK before final delivery to RS facilities at Corby and Nuneaton."

Geodis Wilson was created from a merger of Geodis Overseas, TNT Freight Management and Rohde & Liesenfeld.
May - French rail and logistics group SNCF had significantly ramped up its apparent push to try and become as important a player on the global logistics stage as German counterpart and rival Deutsche Bahn.

The group's Transport and Logistics Division business Geodis, which it bought earlier this year after previously being its main shareholder for many years announced it had acquired IBM's internal global logistics operations in an all-cash deal for an undisclosed amount and signed a multi-year outsourcing contract.

Through that contract, stated Geodis, it would be the sole lead logistics provider for IBM, managing approximately €1bn per year of IBM's logistics costs supporting asset recovery services, service parts logistics and flow management of all hardware and software products worldwide.

"This agreement is strategic to reinforce Geodis' position among the world's leading logistics providers capable of delivering end to end solutions to its global clients," claimed Geodis's Deputy CEO.

"With this partnership, we will strengthen the skills and expertise required to service both IBM's and our existing and future clients' core logistics needs in more than 120 countries. IBM's global logistics operations will significantly upgrade our services portfolio."

Geodis said it was increasing its investments outside Europe and the new acquisition complemented the company's existing teams. "By leveraging IBM's employees in more than 50 countries across the US, Canada, Latin America, Europe and Asia Pacific, Geodis' service offering will be enhanced with multinational supply chain experts and an established worldwide platform to enable rapid growth and expansion," it claimed.

Geodis said the IBM transaction, which was expected to close in the first quarter of 2009, was subject to the expiration or the early termination of the waiting period under the HSR Act and the issuance by the EC (European Commission) of a decision declaring the transaction compatible with the EC Common Market as well as to applicable regulatory clearance, local agreements and appropriate and required employee information and consultation processes.

SNCF claims that its Transport and Logistics Division was currently the fourth-largest transport and logistics operator in Europe, with annual revenue of €8.5bn.

 

Information Systems

  • Descartes' Cargo 2000 Forwarder
    Name: Descartes' Cargo 2000 Forwarder
    Vendor: The Descartes Systems Group Inc.
    Description: TNT Freight Management (now Geodis Wilson) selected an on-demand logistics software and services specialist The Descartes Systems Group Inc.'s Global Logistics Network to help comply with the Cargo 2000 air cargo quality management industry standard. Cargo 2000 is an International Air Transport Association (IATA) interest group comprised of many of the world's major airlines, freight forwarders and general handling agents. Its goal is to implement quality management standards and systems for the worldwide air cargo industry and drive increased efficiencies in air cargo delivery.
    Capabilities:  Decartes' Cargo 2000 Forwarder platform helps freight forwarders track customer shipments and measure the delivery performance of air carriers. TNT Freight Management (now Geodis Wilson) has been a member of the Global Logistics Network for several years, using Descartes' logistics communication and visbility solutions.
  • E-sp@ce, EDI, Logistics IS, Geodis BM IS, Cristal, Onboard Systems
    Name: E-sp@ce, EDI, Logistics IS, Geodis BM IS, Cristal, Onboard Systems
    Vendor: In-House
    Description: Geodis IS - Geodis information systems are:
    • applications developed from its own specifications for managing its business
    • EDI and the interconnection of in-house information systems with those of customers and partners
    • 4000 terminals at customer sites
    • interactive services at the Calberson and France Express web sites
    • a partnership with IBM Global Services
    • market places with shippers (Teleroute, Nettrans)
    • warehouse management solutions

    E-sp@ce - a Geodis Calberson innovation which makes available via its internet site a range of interactive solutions to make exchanges simpler, more reliable and rapid.

    EDI - permits the transfer of information pertaining to an order in total security and provides notification in real time.

    Logistics IS - this system is devoted to the field of warehouse management.

    Geodis BM IS - this system is resolutely customer oriented.

    Cristal - The Cristal system can be connected to the customer's information system, as well as that of the Calberson agency.  Geodis ensure the availability and maintenance of the material and software configuration.

    Onboard Systems - as a complement to the shipping monitoring tools available to customers, all express drivers now have a computer system onboard their vehicles.
    Capabilities:  Logistics IS - Geodis uses two primary warehouse management tools on an AS400 platform:
    • ALTESSE, a tool developed and maintained by Geodis
    • G.E.O.D.E. a software package sold by CLE128, a subsidiary of Adonix.
    • Geodis has also developed an NT platform tool, Millenium to handle simple of small-sized cases.

    The products manage all activities at a warehouse. They handle product architecture, multiple references (shipper, commercial, supplier, manufacturer, etc.) and its multiple packaging schemes. The products also manage series and batch numbers and different dates, thereby offering tracking options for the entire logistics chain.

    Cristal - functions:

    • entering shipments
    • weighing packages
    • recording delivery slips
    • exchange of information between the customer and the carrier via EDI
    • generation of package labels with barcodes
    • generation of statistics
  • Teleroute
    Name: Teleroute
    Vendor: Teleroute
    Description: Teleroute implement a solution for all the 200 Geodis sites across Europe to optimise freight exchanges. In addition to the Freight Exchange solution provided to Geodis as a basis for its freight management as of 2008, Teleroute provides a Private Freight Exchange to Geodis, a system that allows Geodis to deal in priority with its network of partners.
    Capabilities:  The private freight exchange system allows all European sites of Geodis to assign its freights to regular carriers. If the offer is not allocated to a regular carrier through the Private Exchange, then it will turn automatically to the general freight exchange and it will be visible by all the users of Teleroute.

Regions

Vertical Sectors

  • Automotive

    Automotive: 2012 News

    2012

    October - Geodis Calberson announced it had won a contract to manage the warehousing and UK & Ireland distribution of product for Sogefi, a global supplier of original as well as aftermarket parts for the automotive industry.

    The General Manager of Sogefi Aftermarket Division said: "Geodis, an established provider to the Sogefi Aftermarket Division in Europe with a proven ability to achieve high levels of delivery performance and distribution support, is now operating our aftermarket next day delivery service from a modern, future-ready distribution centre located at Lutterworth, East Midlands."

    Geodis Calberson received product from Sogefi's plants in Wales and from central stock in Europe and managed stock-holding and same day order picking and dispatch. Orders were delivered next day delivery to factories across the UK, with Geodis' wholly-owned subsidiary the Fortec Distribution Network and a parcel carrier sharing the workload.

    She added: "The decision to restructure our distribution service gives us a much better service level overall in the UK and Ireland. We are also confident that Geodis will ensure Sogefi achieves a robust and efficient next day service for all our distributor customers – including later order cut-off times."

    Automotive: 2013 News

    2013

    March - SNCF Geodis signed a contract to deliver spare parts for Liebherr Logistics, the global construction machinery manufacturer and operator, in France.

    The agreement covered the shipment of spare parts from Germany for delivery to all parts of France. Geodis had designed a made-to-measure solution in partnership with Liebherr, to enable its customer to ship spare parts from Germany to depots and customers in France in just 24 hours. This solution, which relied on the France Express network, also concerned the delivery of spare parts directly to worksites, such as the high-speed rail worksites currently in progress.

    Every day, six Geodis vehicles would leave the Liebherr warehouse in Kirchdorf an der Iller in Bade Wurtemberg, southern Germany, for the three express platforms operated by Geodis in Gennevilliers, Nancy and Corbas. The parcels were delivered the next day from these platforms to all parts of France.

    The parcels shipped comprise spare parts for hydraulic shovels (shovel arms, mechanical and electronic parts, hydraulic cylinders, windows and windscreens). Some 230 parcels weighing between 1 kg and 1 tonne were shipped daily.

    On signing the contract, the Vice-President, Groupage and Express Geodis, said: "The trust placed in us by Liebherr highlights the capacity of Geodis to develop solutions tailored to specific needs, notably in terms of service quality and delivery times. The density of our network enables us to meet significant logistics challenges, as for Liebherr".

    Automotive: 2011 News

    2011

    January - Peter Baumann was appointed Global Director Automotive at Geodis Wilson.

    He would be in charge of developing and expanding the Company’s automotive logistics business worldwide. The appointment supported the company’s global growth strategy. Geodis Wilson, a leading international freight management company, was enhancing its logistics activities in the automotive sector, as well as in the pharmaceutical and hi-tech industries.
    Automotive: 2010 News

    2010

    March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

    Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

    With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

    Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

    "With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

    Key figures for Bertola (at the time of the acquisition):

    • 2008 revenue: €60.9m
    • Italy’s tenth-largest provider of contract logistics
    • 92 employees
    • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
    • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.
    Automotive: 2009 News

    2009

    January - GEODIS LOGISTICS and the Belgian service provider NOVA HOLDING created a joint venture, which provided logistics services in the port of Antwerp.

    Nova Natie, a Belgian logistics service provider, was a long-time group with family capitals, specialized in value-added logistics services for the consumer products, textile and high-tech sectors. It was one of the main logistics service providers set in the port of Antwerp, with nearly 250,000 sq m of warehouses with branch lines.

    Geodis Logistics provided logistics services for for high-tech, automotive, health and consumer products. It owned 170 warehouses on 2,000,000 sq m in Europe, and benefited from Geodis group freight forwarding network, which covered 120 countries in the world, as well as from European distribution means from the Divisions Geodis Calberson and Geodis BM.

    The new entity GEODIS NOVA LOGISTICS was aiming at providing value-added logistics services directly in the port of Antwerp such as control of products, labelling, postponement, assembling, kitting, packaging and co-packing to the manufacturers and distributors.

  • Chemical

    Chemical: Summary

    SNCF Geodis’ Full Truckload division is involved in transporting and handling hazardous goods. The main business is concentrated in the Chemicals-Gas sub-division, whose activities include transporting bulk and packaged chemical, oil and gas products as well as storing packaged chemical products. Chemicals are transported either in bulk form, in articulated tankers, or in packaged form, in semi-articulated trucks.

    The Chemicals-Gas subdivision's storage facility is located at Salaise-sur-Sanne in southeast France.

    SNCF Fret, part of Geodis, has considerable chemical rail freight resources. The market for rail freight has changed considerably over the past ten years due, in great part, to the de-regulation process in many parts of Europe. This has given access to the rail freight market of, for example, France, to non-French companies and private sector operators. In response, SNCF has restructured its operations, including developing its operations outside France. As regards the latter, SNCF developed Captrain which is a composite of SNCF’s existing businesses in neighbouring countries and assets such as Rail4Chem. This gives SNCF a strong presence across Germany as well as in Belgium and the Netherlands.

    A further strengthening of SNCF’s chemical business was achieved through the acquisition of the rail wagon rental and tank container operator Ermewa. With a revenue in 2010 of €504m, this provides a fleet of 60,000 rail wagons with 24,000 tank containers.

    © 2012 Transport Intelligence
    Chemical: 2012 News

    2012

    October - Fret SNCF announced that it had enhanced its multi-lots multi-clients, single wagon offer and extended it to international routes.

    The extended service would connect beyond France's borders on the rail line connecting Woippy (France) and Antwerp (Belgium), ensuring an end-to-end service. From early 2013, Fret SNCF would also provide this end-to-end offer for all Franco-Swiss traffic carried by Fret SNCF and CFF, its historic partner in Switzerland.

    The service possibilities in France were also extended. A direct link between Lyon and Mulhouse would be operational from the end of 2012, in addition to other domestic routes.

    The overall expansion of the service would supplement the 23 existing links already offered. The increase in the number of destinations responded to the needs of manufacturers, particularly those in the chemical industry.
    Chemical: 2010 News

    2010

    July - SNCF Geodis wholly acquired Ermewa, a major European player in wagon rental, operation and maintenance for the transport of hazardous and non-hazardous liquid, gas and solid products.

    At the time of the completion of the acquisition, Ermewa owned a fleet of 60,000 wagons, 23,000 containers and 16,000 small containers.

    Ermewa became part of the Asset Management entity of SNCF Geodis.

  • Consumer/ Retail

    Consumer/ Retail: Summary
    Geodis Goods Flow Management
    Source: Geodis

    Geodis is recognised as a specialist in the luxury goods sector: perfumes, cosmetics, table art, fashion accessories, fancy leather goods, wines and spirits, gourmet food, glassware, porcelain, silverware, etc. 

    A single contact deploys and organises the resources needed to implement logistics project. Each customer is provided with upgradeable solutions such as:

    • customer-site logistics, at a dedicated site or multi-customer platform
    • customer or Geodis IT system, which can be interfaced or transferred to the customer's premises.

     Supply logistics:

    • management of supplier calls, customs clearance, receipt, quality control
    • vendor-managed inventory
    • order picking, supply of chains in synchronisation with production cycles

    Distribution logistics:

    • inventory management by unit
    • order picking for end customer
    • specific and unit packaging
    • management of promotional operations, co-packing, customisation, value-added services etc.
    • design, coordination and execution of systems combining the various distribution methods: cross-dock, merge-in-transit, etc.
    • specialised transport: dedicated shuttles, secure and unmarked vehicles, emergency restocking, inter-warehouse breakdown support
    • delivery to department stores (corners).
    Consumer/ Retail: 2013 News

    2013

    June - Geodis Logistics, the logistics Division of SNCF Geodis, announced it would manage the road transport and logistics activities of LG Electronics in Italy for the next three years. LG Electronics provided consumer electronics, mobile communications and home appliances.

    The project, which involved 40 people, would be operated from Castel San Giovanni (nearby Milan), where Geodis Logistics owned a 250,000 sq m logistics park. Geodis stated that more than 144,000 cu m of LG products would be managed at the site.

    Under the terms of the contract, Geodis would provide warehousing, inbound and outbound distribution as well as reverse logistics services including returns management, repair, refurbishment and dismantling of stock.

    "Geodis Logistics, thanks to the experience it has gained working side by side with leading high technology brands, has proven to be the most suitable partner for LG Electronics, with whom we signed an important three]year contract" commented the Geodis Logistics CEO.

    He added, "Thanks to our know]how, we are able to offer our client LG a great amount of flexibility in order to follow enduring market evolution and the compression of products life. Such experience allowed us to integrate our offer with reverse logistics services, thus ensuring the correct management of the end of products life cycle."


     

    April - SNCF Geodis had signed a three-year contract with Heineken to handle its logistics flows across France. Geodis already managed the transport of 30% of Heineken goods to customers and between the brewer's sites (Marseille in the south of France, Schiltigheim in the east of France and Mons-en-Baroeul in the north of France).

    In a further reflection of the enhanced working relationship between Geodis and Heineken, the contract included part of the logistics flows for France Boissons, a Heineken subsidiary.

    Geodis BM stated that the the strategic new contract marked its determination to develop multi-modal transport to tie in with the Heineken group's environmental policy. As part of that drive, Geodis would make significant use of combined rail-road transport.

    In addition, Geodis BM had rolled out a singular multi-business coordination system to better manage anticipation stocks, seasonal variations and promotional periods through a new Transport Management System. The system covered transport order dispatch, operational service providers, service monitoring, the management of delivery appointments and load capacities by the shipping sites (breweries and warehouses), the management of last-minute orders, and the management of quality reporting and the performance of each person involved.

    The Managing Director of Geodis BM, said: "We have been working alongside Heineken since 2008. Our key priority was to bring our customer a strategic flow management solution that fulfils its expectations and corresponds to its future needs. We are very proud to have won the trust of Heineken and to have made Geodis BM the leading partner of its supply chain in France."


     

    February - Geodis Wilson, SNCF Geodis' freight management division, signed a two year contract to manage the global logistics operations for international luggage manufacturer, Delsey.

    Geodis Wilson would implement a fully integrated logistics service with management of intra-Asia freight services through Vietnam and Southern China, contractual logistics with a permanent storage volume above 15,000 cu m and Full Container Load (FCL) deliveries worldwide to France, US, Latin America, Middle East and Asia Pacific.

    The Geodis Wilson logistics centre was located in Shanghai's Yangshan Free Trade Port Area. This was where 36,000 cu m of Delsey products for import and export would be handled yearly, as well as round-trip FCL trucking from Yangshan port to the distribution centre and Less Than Truckload (LTL) domestic distribution with a yearly volume of 4,000 cu m to Delsey customers in 37 cities in China.

    Commenting on the contract success, the CEO of SNCF Geodis, said: “This contract highlights Geodis Wilson’s strong presence in China’s competitive transport and logistics market. Our innovative approach will allow Delsey to increase productivity, reduce business complexity and optimise their supply chains with a single, best in class logistics provider.”


     

    February - SNCF Geodis won a contract with DIY retailer Castorama to provide home deliveries of website orders in France. The new, three-year contract further strengthened the collaborative effort in transport and logistics services started by the two groups in 2005.

    Geodis was using a new, 24,000 sq m warehouse in Saint-Quentin-Fallavier to handle Castorama's e-commerce business and manage the cross-docking activities required to deliver the customer's stores in the Lyon area.

    Of the warehouse's 24,000 sq m, 8,000 sq m were used for storing, preparing orders and coordinating transport operations for the 12,000 product references concerned by the customer's e-commerce activity. Geodis directly handled deliveries of large, value-added goods requiring special resources.

    The cross-docking operations provided since 2006 by Geodis at the Corbas site in the Rhône department were transferred to the Saint-Quentin-Fallavier warehouse for the new contract, and were used to supply continuous flows to the 19 Castorama stores in the Lyon area. The new contract had led to the creation of 36 new jobs at the new platform.

    To respond to the diversity of the deliveries generated by Castorama's activities, Geodis had introduced special vehicles, including crane trucks for "heavy" equipment and vans for city centres, as well as two-person teams for special home-delivery operations.

    The managing director of Geodis Logistics, commented: "The trust placed in us by Castorama underscores our expertise in e-commerce logistics. Through its capacity for innovation, Geodis provides the customer with a global solution adapted to its specific needs, particularly in terms of the size and type of goods".

    Geodis had also handled multimodal rail-road transport between northern France and the Lyon area for Castorama since 2011.

    Consumer/ Retail: 2012 News

    2012

    June - Mattel, the global toy products manufacturer, awarded Geodis the management of its logistics and distribution operations in southern Europe. This six-year contract included the reception of 3,000 sea containers per year from Asia, customs clearance, palletising, storage and the management of 1,800 references to be distributed in France, Spain, and Portugal.

    To support the contract win, Geodis was setting up a 42,000 sq m warehouse in the Distriport area of Marseilles, France. By late 2013, the total area of the distribution centre would be brought up to 60,000 sq m.

    This contract was part of a long-standing partnership between the two companies, as Geodis had been managing Mattel's North Europe distribution centre in Venlo, Netherlands, as well as two hubs in Tanjung Pelapas and Port Klang in Malaysia since 2007.

    Geodis's Chief Executive Officer, said: "We are proud and honoured by this expansion and strengthening of the partnership developed with a client as prestigious as Mattel. This partnership is based on our expertise in the toy products industry, the reliability of our solutions, and our ability to duplicate our operational excellence to better serve Mattel, in Europe and around the world."

    Consumer/ Retail: 2011 News

    2011

    November - Geodis Wilson announced the appointment of Gilbert den Bekker as its Vertical Market Director, Retail and Fashion.

    Based at Geodis Wilson’s office in Paris, France, he would be in charge of developing and expanding the company’s logistics services in the retail and fashion sector worldwide.


     

    September - Geodis announced that, as of October 6, it would begin making deliveries for Carrefour in Lille using a hybrid refrigerated trailer truck. A new initiative in Geodis' Distripolis urban logistics system, this first-of-its-kind service would mean deliveries to the six Carrefour stores in the Lille city centre would be both cleaner and quieter.

    In May 2010, Geodis teamed up with Renault Trucks to test a unique hybrid vehicle equipped with a cryogenic refrigeration unit. The vehicle was proposed to several customers for testing, and the retailer Carrefour was first to request the new vehicle. A perfect fit with Carrefour's sustainable development strategy, this 26-tonne hybrid truck that complied with the Euro 5 standard would begin delivering goods to Carrefour stores in Lille starting in October.

    The thermal engine–electric motor combo in hybrid trucks lowered diesel consumption by an average of 20%. This represented an annual reduction in CO2 emissions of 10 tonnes. The use of liquid nitrogen, a non-toxic substance that emitted no CO2, as the refrigeration fluid made this vehicle even more environmentally friendly. This vehicle also had separate transport compartments, so both fresh produce and dry goods could be delivered. In addition, the cooling unit lowered the temperature twice as fast, making the truck particularly useful for the transport of vegetables.
    Consumer/ Retail: 2010 News

    2010

    July - Nestle renewed its cooperation with Geodis Logistics for a further five years. In its distribution centre in Ludinghausen, North Rhine, Geodis Logistics takes over the storage, picking and worldwide distribution of 500 different Nestle products.

    Geodis plans to make further investment in the distribution centre as part of its sustainability strategy for 2010. The aim is for the expanded facility to reduce its energy consumption by 20%. In addition, it will extend the flow capacity enabling it to be able to respond to volume peaks.


    March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

    Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

    With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

    Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

    "With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

    Key figures for Bertola (at the time of the acquisition):

    • 2008 revenue: €60.9m
    • Italy’s tenth-largest provider of contract logistics
    • 92 employees
    • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
    • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.
    Consumer/ Retail: 2009 News

    2009

    January - Geodis Logistics and the Belgian service provider Nova Holding created a joint venture, which provided logistics services in the port of Antwerp.

    Nova Natie, a Belgian logistics service provider, was a long-time group with family capitals, specialized in value-added logistics services for the consumer products, textile and high-tech sectors. It was one of the main logistics service providers set in the port of Antwerp, with nearly 250,000 sq m of warehouses with branch lines.

    Geodis Logistics provided logistics services for for high-tech, automotive, health and consumer products. It owned 170 warehouses on 2,000,000 sq m in Europe, and benefited from Geodis group freight forwarding network, which covered 120 countries in the world, as well as from European distribution means from the Divisions Geodis Calberson and Geodis BM.

    The new entity Geodis Nova Logistics was aiming at providing value-added logistics services directly in the port of Antwerp such as control of products, labelling, postponement, assembling, kitting, packaging and co-packing to the manufacturers and distributors.

  • Fashion/ Textiles

    Fashion/ Textiles: 2011 News

    2011

    November - Geodis Wilson announced the appointment of Gilbert den Bekker as its Vertical Market Director, Retail and Fashion.

    Based at Geodis Wilson’s office in Paris, France, he would be in charge of developing and expanding the company’s logistics services in the retail and fashion sector worldwide.


     

    March - Geodis Logistics, through recently acquired Italian company Bertola Servizi Logistici (BSL), signed a six year agreement with YOOX Group for the supply of integrated logistics services to the new highly-automated global operations and distribution platform in Interporto Bologna.

    Geodis Logistics would manage YOOX Group’s supply chain, coordinating the handling and shipping activities for fashion items (garments on hangers and flat garments), as well as inventory management related to footwear and fashion accessories in the storage, packaging, shipping and return management phases.

    A dedicated team of 68 people would work on the project using the most modern storage systems.

    “In 2011 we began a partnership with one of the leaders in Internet fashion and design retail. The agreement signed with YOOX Group confirms the role of Geodis as a global provider of logistics services at both the national and international level – said Aurelio Zilio, BSL CEO.
    Fashion/ Textiles: 2010 News

    2010

    March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

    Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

    With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

    Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

    "With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

    Key figures for Bertola (at the time of the acquisition):

    • 2008 revenue: €60.9m
    • Italy’s tenth-largest provider of contract logistics
    • 92 employees
    • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
    • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.
    Fashion/ Textiles: 2009 News

    2009

    January - Geodis Logistics and the Belgian service provider Nova Holding created a joint venture, which provided logistics services in the port of Antwerp.

    Nova Natie, a Belgian logistics service provider, was a long-time group with family capitals, specialized in value-added logistics services for the consumer products, textile and high-tech sectors. It was one of the main logistics service providers set in the port of Antwerp, with nearly 250,000 sq m of warehouses with branch lines.

    Geodis Logistics provided logistics services for for high-tech, automotive, health and consumer products. It owned 170 warehouses on 2,000,000 sq m in Europe, and benefited from Geodis group freight forwarding network, which covered 120 countries in the world, as well as from European distribution means from the Divisions Geodis Calberson and Geodis BM.

    The new entity Geodis Nova Logistics was aiming at providing value-added logistics services directly in the port of Antwerp such as control of products, labelling, postponement, assembling, kitting, packaging and co-packing to the manufacturers and distributors.

  • Healthcare/ Pharmaceutical

    Global Pharmaceutical Logistics 2011: Summary

    Geodis offers both freight management and logistics services for the healthcare industry including management of returns, recalls and destruction oversight, pharmaceutical packaging and exports, management of samples and transportation management. The company provides logistics at the customer’s site, at a dedicated site or at a multi-customer platform.

    Geodis has strengthened its position in the healthcare market and consolidated its offering with the acquisition of the pharmaceutical pre-wholesaler Pharmalog. Pharmalog was a pharmaceuticals logistics and distribution company based in Val de Reuil in Normandy, France.

    It had 50,000 sq m of storage space and a workforce of 150 and revenue of €18m. The new entity will carry out a full range of value-added operations: sales administration, customer debt recovery, repackaging, management of free medical samples, etc. It has nine specialised platforms in France (warehouses, clean rooms, controlled temperature premises, etc.) a workforce of almost 500 employees. In the long term, this organisation will be deployed Europe-wide, based on operations already carried out for the health sector by Geodis Logistics in Benelux, Ireland and Italy.

    At the same time, Pharmalog customers will gain access to all the dedicated services in logistics, distribution and international transport delivered by the Geodis Group to healthcare professionals.

    Geodis have inaugurated, together with Laboratoires Expanscience, a new logistics platform for the healthcare sector at Droue-sur-Drouette near Epernon, in the heart of France's 'Cosmetic Valley'. Healthcare/Cosmetics has been a key growth sector for the Geodis group for more than 15 years.

    In Europe Geodis currently operates 15 special purpose and regulation-compliant platforms that manage stocks in an ambient or controlled temperature environment, prepare orders for the entire sector, and provide value-added services such as relabelling, inspection and packaging.

    To span the entire supply chain, Geodis also manages import/export transport flows for products, and handles domestic distribution through its Certipharm-certified Geodis Calberson network or its Geodis Ciblex parcels network. The new 15,600 sq m Droue-sur-Drouette platform is equipped with a retail parcel preparation line that can handle up to 12m products annually and a full-parcel preparation line.

    It has a 5,800 sq m storage area with the temperature regulated at 15°/25° and employs 50 people in two shifts. Its main client is Laboratoires Expanscience, a long-standing customer of the Geodis group. Laboratoires Expanscience is present in both the pharmaceutical and dermo-cosmetic sectors, and is the leader for skin care products for babies. Geodis distributes Expanscience products in more than 50 countries. Every year, this involves managing 1,600 articles, checking in 50,000 pallets, preparing 1,300,000 orders and shipping 1,500,000 parcels.

    Services include:

    • logistics at the customer's site, at a dedicated site or at a multi-customer platform
    • customer or Geodis computer systems with interfacing and portability capacity.

    Geodis has the triple role of manufacturer, depositary and distributor of drugs for clinical trials enabling them to conduct any business related to health logistics.

    Pre-production logistics

    • oversight and execution of upstream transportation (ground, air, sea) and related services
    • management of raw materials and packaging items with sampling
    • production chain provisioning in tight flows.

    Post-production logistics

    • receipt, qualitative and quantitative control, specific drawing and shipping of samples
    • stock management at controlled and/or directed temperatures
    • order preparation with controlled line and weighted control
    • pharmaceutical packaging and exports
    • oversight and execution of downstream transportation
    • management of returns and recalls, demolition oversight
    • transfer and installation of medical equipment and units
    • management of medical equipment spare parts.

    © 2011 Transport Intelligence

    Healthcare/ Pharmaceutical: 2012 News

    2012

    December - After a partnership spanning eight years, Bayer Pharma was outsourcing all its pharmaceutical logistics to SNCF Geodis under a seven and a half-year contract.

    Geodis had taken over all of Bayer's laboratory logistics operations in France at the Saint Georges de Reneins site north of Lyon. This platform of around 15,000 sq m carried out logistics operations such as incoming orders, quality control, storage, unit order picking, labelling, packaging and preparation of shipments.

    Working from this automated site, Geodis processed all the health products distributed by Bayer to pharmacies and hospitals in metropolitan France and French overseas territories.

    A Geodis company statement said: "Authorised for pharmaceutical warehousing in Europe, Geodis Logistics is consolidating its position on the European health market, through ten health market lines (warehousing, clean rooms, controlled temperatures, etc.) on premises of 200,000 sq m at the heart of pharmaceutical technology parks, with 600 employees, and around 15 pharmacists."

    Healthcare/ Pharmaceutical: 2011 News

    2011

    September - The Geodis Group strengthened its position on the healthcare market and consolidated its offering with the acquisition of the pharmaceutical pre-wholesaler Pharmalog.

    Pharmalog was a pharmaceuticals logistics and distribution company based in Val de Reuil in Normandy, France. It had 50,000 sq m of storage space and a workforce of 150. Pharmalog had revenue of €18m.

    The new entity would carry out a full range of value-added operations: sales administration, customer debt recovery, repackaging, management of free medical samples, etc. It had nine specialised platforms in France (warehouses, clean rooms, controlled temperature premises, etc.) a workforce of almost 500 employees.

    In the long term, this organisation would be deployed Europe-wide, based on operations already carried out for the health sector by Geodis Logistics in Benelux, Ireland and Italy. At the same time, Pharmalog customers would gain access to all the dedicated services in logistics, distribution and international transport delivered by the Geodis Group to healthcare professionals.

    The CEO of Geodis, said: "This new vertical offering places Geodis among the top three players in healthcare logistics in France, as well as opening broad new prospects in Europe. This organisation will bring real benefits for customers since it is a close fit with the services developed by the cross-cutting entity Geodis Global Solutions and the other divisions of the Geodis Group: Groupage & Express, Contract Logistics, Freight Management and Road."

    Healthcare/ Pharmaceutical: 2010 News

    2010

    September - Geodis inaugurated, together with Laboratoires Expanscience, a new logistics platform for the healthcare sector at Droue-sur-Drouette near Epernon, in the heart of France's 'Cosmetic Valley'.

    Healthcare/Cosmetics had been a key growth sector for the Geodis group for more than 15 years. In Europe the Group currently operated 15 special purpose and regulation-compliant platforms that managed stocks in an ambient or controlled temperature environment, prepare orders for the entire sector, and provide value-added services such as relabelling, inspection and packaging. To span the entire supply chain, Geodis also managed import/export transport flows for products, and handled domestic distribution through its Certipharm-certified Geodis Calberson network or its Geodis Ciblex parcels network.

    The new 15,600 sq m Droue-sur-Drouette platform was equipped with a retail parcel preparation line that could handle up to 12m products annually and a full-parcel preparation line. It had a 5,800 sq m storage area with the temperature regulated at 15°/25° and employed 50 people in two shifts.

    Its main client was Laboratoires Expanscience, a long-standing customer of the Geodis group.

    Laboratoires Expanscience was present in both the pharmaceutical and dermo-cosmetic sectors, and was the leader for skin care products for babies. Geodis distributed Expanscience products in more than 50 countries. Every year, this involved managing 1,600 articles, checking in 50,000 pallets, preparing 1.3m orders and shipping 1.5m parcels.

  • High Tech

    High Tech: 2010 News

    2010

    June - Parrot, a leader in wireless peripherals for mobile telephony, awarded the management of its supply chain and reverse logistics to Geodis Logistics. Following a call for tender launched in 2009, Geodis Logistics concluded a contract with Parrot covering stock management, equipment customisation and reverse logistics for its products. The award involves a multi-year contract to manage the key stages of the company's supply chain.

    As a result, since February, Geodis Logistics had been providing logistics services for Parrot, including customisation of equipment and assembling kits at one of its logistics hubs in the Paris region.

    The products concerned were essentially hands-free systems for mobile phones and top-of-the-range multimedia products, destined to be sold in over 60,000 outlets worldwide. Services also include order management for 80 countries in the EMEA and Latin America zones, supplying the products to Certified Installer networks, automobile accessory manufacturers, non-food superstores and department stores.

    "The technical complexity of our products and market considerations call for flawless distribution to our end customers," said Parrot's Chief Production and Quality Officer at the contract signing. "We are convinced that Geodis Logistics' familiarity with this sector will enable it to provide the required levels of quality."
    High Tech: 2009 News

    2009

    June - Parrot, a leader in wireless peripherals for mobile telephony, awarded the management of its supply chain and reverse logistics to Geodis Logistics. Following a call for tender launched in 2009, Geodis Logistics concluded a contract with Parrot covering stock management, equipment customisation and reverse logistics for its products. The award involved a multi–year contract to manage the key stages of the company's supply chain.

    As a result, since February, Geodis Logistics had been providing logistics services for Parrot, including customisation of equipment and assembling kits at one of its logistics hubs in the Paris region.

    The products concerned were essentially hands–free systems for mobile phones and top–of–the–range multimedia products, destined to be sold in over 60,000 outlets worldwide. Services also included order management for 80 countries in the EMEA and Latin America zones, supplying the products to Certified Installer networks, automobile accessory manufacturers, non–food superstores and department stores.

    "The technical complexity of our products and market considerations call for flawless distribution to our end customers," said Philippe Poussin, Parrot's Chief Production and Quality Officer at the contract signing. "We are convinced that Geodis Logistics' familiarity with this sector will enable it to provide the required levels of quality."


     

    January - Geodis Logistics and the Belgian service provider Nova Holding created a joint venture, which provided logistics services in the port of Antwerp.

    Nova Natie, a Belgian logistics service provider, was a long-time group with family capitals, specialized in value-added logistics services for the consumer products, textile and high-tech sectors. It was one of the main logistics service providers set in the port of Antwerp, with nearly 250,000 sq m of warehouses with branch lines.

    Geodis Logistics provided logistics services for for high-tech, automotive, health and consumer products. It owned 170 warehouses on 2,000,000 sq m in Europe, and benefited from Geodis group freight forwarding network, which covered 120 countries in the world, as well as from European distribution means from the Divisions Geodis Calberson and Geodis BM.

    The new entity Geodis Nova Logistics was aiming at providing value-added logistics services directly in the port of Antwerp such as control of products, labelling, postponement, assembling, kitting, packaging and co-packing to the manufacturers and distributors.

Other related vertical sectors

Logistics markets

  • Automotive Logistics

    Automotive Logistics: Summary

    SNCF Geodis' main presence in automotive logistics is through dedicated provider of finished vehicle logistics STVA.

    © 2012 Transport Intelligence
    Automotive Logistics: 2012 News

    2012

    October - Geodis Calberson announced it had won a contract to manage the warehousing and UK & Ireland distribution of product for Sogefi, a global supplier of original as well as aftermarket parts for the automotive industry.

    The General Manager of Sogefi Aftermarket Division said: "Geodis, an established provider to the Sogefi Aftermarket Division in Europe with a proven ability to achieve high levels of delivery performance and distribution support, is now operating our aftermarket next day delivery service from a modern, future-ready distribution centre located at Lutterworth, East Midlands."

    Geodis Calberson received product from Sogefi's plants in Wales and from central stock in Europe and managed stock-holding and same day order picking and dispatch. Orders were delivered next day delivery to factories across the UK, with Geodis' wholly-owned subsidiary the Fortec Distribution Network and a parcel carrier sharing the workload.

    She added: "The decision to restructure our distribution service gives us a much better service level overall in the UK and Ireland. We are also confident that Geodis will ensure Sogefi achieves a robust and efficient next day service for all our distributor customers – including later order cut-off times."


  • Cold Chain Logistics

    Cold Chain Logistics: 2011 News

    2011

    September - Geodis announced that, as of October 6, it would begin making deliveries for Carrefour in Lille using a hybrid refrigerated trailer truck. A new initiative in Geodis' Distripolis urban logistics system, this first-of-its-kind service would mean deliveries to the six Carrefour stores in the Lille city centre would be both cleaner and quieter.

    In May 2010, Geodis teamed up with Renault Trucks to test a unique hybrid vehicle equipped with a cryogenic refrigeration unit. The vehicle was proposed to several customers for testing, and the retailer Carrefour was first to request the new vehicle. A perfect fit with Carrefour's sustainable development strategy, this 26-tonne hybrid truck that complied with the Euro 5 standard would begin delivering goods to Carrefour stores in Lille starting in October.

    The thermal engine–electric motor combo in hybrid trucks lowered diesel consumption by an average of 20%. This represented an annual reduction in CO2 emissions of 10 tonnes. The use of liquid nitrogen, a non-toxic substance that emitted no CO2, as the refrigeration fluid made this vehicle even more environmentally friendly. This vehicle also had separate transport compartments, so both fresh produce and dry goods could be delivered. In addition, the cooling unit lowered the temperature twice as fast, making the truck particularly useful for the transport of vegetables.

  • Contract Logistics

    Contract Logistics: 2013 News

    2013

    June - Geodis Logistics, the logistics Division of SNCF Geodis, announced it would manage the road transport and logistics activities of LG Electronics in Italy for the next three years. LG Electronics provided consumer electronics, mobile communications and home appliances.

    The project, which involved 40 people, would be operated from Castel San Giovanni (nearby Milan), where Geodis Logistics owned a 250,000 sq m logistics park. Geodis stated that more than 144,000 cu m of LG products would be managed at the site.

    Under the terms of the contract, Geodis would provide warehousing, inbound and outbound distribution as well as reverse logistics services including returns management, repair, refurbishment and dismantling of stock.

    "Geodis Logistics, thanks to the experience it has gained working side by side with leading high technology brands, has proven to be the most suitable partner for LG Electronics, with whom we signed an important three]year contract" commented the Geodis Logistics CEO.

    He added, "Thanks to our know]how, we are able to offer our client LG a great amount of flexibility in order to follow enduring market evolution and the compression of products life. Such experience allowed us to integrate our offer with reverse logistics services, thus ensuring the correct management of the end of products life cycle."


     

    April - SNCF Geodis had signed a three-year contract with Heineken to handle its logistics flows across France. Geodis already managed the transport of 30% of Heineken goods to customers and between the brewer's sites (Marseille in the south of France, Schiltigheim in the east of France and Mons-en-Baroeul in the north of France).

    In a further reflection of the enhanced working relationship between Geodis and Heineken, the contract included part of the logistics flows for France Boissons, a Heineken subsidiary.

    Geodis BM stated that the the strategic new contract marked its determination to develop multi-modal transport to tie in with the Heineken group's environmental policy. As part of that drive, Geodis would make significant use of combined rail-road transport.

    In addition, Geodis BM had rolled out a singular multi-business coordination system to better manage anticipation stocks, seasonal variations and promotional periods through a new Transport Management System. The system covered transport order dispatch, operational service providers, service monitoring, the management of delivery appointments and load capacities by the shipping sites (breweries and warehouses), the management of last-minute orders, and the management of quality reporting and the performance of each person involved.

    The Managing Director of Geodis BM, said: "We have been working alongside Heineken since 2008. Our key priority was to bring our customer a strategic flow management solution that fulfils its expectations and corresponds to its future needs. We are very proud to have won the trust of Heineken and to have made Geodis BM the leading partner of its supply chain in France."

    Contract Logistics: 2012 News

    2012

    December - After a partnership spanning eight years, Bayer Pharma was outsourcing all its pharmaceutical logistics to SNCF Geodis under a seven and a half-year contract.

    Geodis had taken over all of Bayer's laboratory logistics operations in France at the Saint Georges de Reneins site north of Lyon. This platform of around 15,000 sq m carried out logistics operations such as incoming orders, quality control, storage, unit order picking, labelling, packaging and preparation of shipments.

    Working from this automated site, Geodis processed all the health products distributed by Bayer to pharmacies and hospitals in metropolitan France and French overseas territories.

    A Geodis company statement said: "Authorised for pharmaceutical warehousing in Europe, Geodis Logistics is consolidating its position on the European health market, through ten health market lines (warehousing, clean rooms, controlled temperatures, etc.) on premises of 200,000 sq m at the heart of pharmaceutical technology parks, with 600 employees, and around 15 pharmacists."


     

    June - Mattel, the global toy products manufacturer, awarded Geodis the management of its logistics and distribution operations in southern Europe. This six-year contract included the reception of 3,000 sea containers per year from Asia, customs clearance, palletising, storage and the management of 1,800 references to be distributed in France, Spain, and Portugal.

    To support the contract win, Geodis was setting up a 42,000 sq m warehouse in the Distriport area of Marseilles, France. By late 2013, the total area of the distribution centre would be brought up to 60,000 sq m.

    This contract was part of a long-standing partnership between the two companies, as Geodis had been managing Mattel's North Europe distribution centre in Venlo, Netherlands, as well as two hubs in Tanjung Pelapas and Port Klang in Malaysia since 2007.

    Geodis's Chief Executive Officer, said: "We are proud and honoured by this expansion and strengthening of the partnership developed with a client as prestigious as Mattel. This partnership is based on our expertise in the toy products industry, the reliability of our solutions, and our ability to duplicate our operational excellence to better serve Mattel, in Europe and around the world."


    Contract Logistics: 2011 News

    2011

    September - The Geodis Group strengthened its position on the healthcare market and consolidated its offering with the acquisition of the pharmaceutical pre-wholesaler Pharmalog.

    Pharmalog was a pharmaceuticals logistics and distribution company based in Val de Reuil in Normandy, France. It had 50,000 sq m of storage space and a workforce of 150. Pharmalog had revenue of €18m.

    The new entity would carry out a full range of value-added operations: sales administration, customer debt recovery, repackaging, management of free medical samples, etc. It had nine specialised platforms in France (warehouses, clean rooms, controlled temperature premises, etc.) a workforce of almost 500 employees.

    In the long term, this organisation would be deployed Europe-wide, based on operations already carried out for the health sector by Geodis Logistics in Benelux, Ireland and Italy. At the same time, Pharmalog customers would gain access to all the dedicated services in logistics, distribution and international transport delivered by the Geodis Group to healthcare professionals.

    The CEO of Geodis, said: "This new vertical offering places Geodis among the top three players in healthcare logistics in France, as well as opening broad new prospects in Europe. This organisation will bring real benefits for customers since it is a close fit with the services developed by the cross-cutting entity Geodis Global Solutions and the other divisions of the Geodis Group: Groupage & Express, Contract Logistics, Freight Management and Road."


    March - Geodis Logistics, through recently acquired Italian company Bertola Servizi Logistici (BSL), signed a six year agreement with YOOX Group for the supply of integrated logistics services to the new highly-automated global operations and distribution platform in Interporto Bologna.

    Geodis Logistics would manage YOOX Group’s supply chain, coordinating the handling and shipping activities for fashion items (garments on hangers and flat garments), as well as inventory management related to footwear and fashion accessories in the storage, packaging, shipping and return management phases.

    A dedicated team of 68 people would work on the project using the most modern storage systems.

    “In 2011 we began a partnership with one of the leaders in Internet fashion and design retail. The agreement signed with YOOX Group confirms the role of Geodis as a global provider of logistics services at both the national and international level – said Aurelio Zilio, BSL CEO.
    Contract Logistics: 2010 News

    2010

    March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

    Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

    With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

    Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

    "With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

    Key figures for Bertola (at the time of the acquisition):

    • 2008 revenue: €60.9m
    • Italy’s tenth-largest provider of contract logistics
    • 92 employees
    • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
    • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.

  • e-commerce

    e-commerce: 2013 News

    2013

    February - SNCF Geodis won a contract with DIY retailer Castorama to provide home deliveries of website orders in France. The new, three-year contract further strengthened the collaborative effort in transport and logistics services started by the two groups in 2005.

    Geodis was using a new, 24,000 sq m warehouse in Saint-Quentin-Fallavier to handle Castorama's e-commerce business and manage the cross-docking activities required to deliver the customer's stores in the Lyon area.

    Of the warehouse's 24,000 sq m, 8,000 sq m were used for storing, preparing orders and coordinating transport operations for the 12,000 product references concerned by the customer's e-commerce activity. Geodis directly handled deliveries of large, value-added goods requiring special resources.

    The cross-docking operations provided since 2006 by Geodis at the Corbas site in the Rhône department were transferred to the Saint-Quentin-Fallavier warehouse for the new contract, and were used to supply continuous flows to the 19 Castorama stores in the Lyon area. The new contract had led to the creation of 36 new jobs at the new platform.

    To respond to the diversity of the deliveries generated by Castorama's activities, Geodis had introduced special vehicles, including crane trucks for "heavy" equipment and vans for city centres, as well as two-person teams for special home-delivery operations.

    The managing director of Geodis Logistics, commented: "The trust placed in us by Castorama underscores our expertise in e-commerce logistics. Through its capacity for innovation, Geodis provides the customer with a global solution adapted to its specific needs, particularly in terms of the size and type of goods".

    Geodis had also handled multimodal rail-road transport between northern France and the Lyon area for Castorama since 2011.

    e-commerce: 2011 News

    2011

    March - Geodis Logistics – through the acquired company BSL – signed a six–year agreement with YOOX Group, an internet retailer of fashion products, for the supply of integrated logistics services to the global operations and distribution platform in Interporto, Bologna.

    Geodis Logistics would manage YOOX Group's supply chain, coordinating the handling and shipping activities for fashion items (garments on hangers and flat garments), as well as inventory management related to footwear and fashion accessories in the storage, packaging, shipping and return management phases. A dedicated team of 68 people would work on the project.

    Chief Executive Officer of Geodis, declared: "This important agreement with YOOX Group is representative of the capacity of Geodis to handle and face the needs and demands of the biggest players within the ecommerce sector in terms of innovation, perimeter covered and expertise."

    "In 2011 we began a partnership with one of the leaders in Internet fashion and design retail. The agreement signed with YOOX Group confirms the role of Geodis as a global provider of logistics services at both the national and international level", said BSL CEO. "In April 2010 we became part of the Geodis Group, which has allowed us to expand our presence in the industry beyond Italy, while maintaining a close relationship with our customers".

  • Express and Parcels

    Express and parcels: 2013 News

    2013

    March - SNCF Geodis signed a contract to deliver spare parts for Liebherr Logistics, the global construction machinery manufacturer and operator, in France.

    The agreement covered the shipment of spare parts from Germany for delivery to all parts of France. Geodis had designed a made-to-measure solution in partnership with Liebherr, to enable its customer to ship spare parts from Germany to depots and customers in France in just 24 hours. This solution, which relied on the France Express network, also concerned the delivery of spare parts directly to worksites, such as the high-speed rail worksites currently in progress.

    Every day, six Geodis vehicles would leave the Liebherr warehouse in Kirchdorf an der Iller in Bade Wurtemberg, southern Germany, for the three express platforms operated by Geodis in Gennevilliers, Nancy and Corbas. The parcels were delivered the next day from these platforms to all parts of France.

    The parcels shipped comprise spare parts for hydraulic shovels (shovel arms, mechanical and electronic parts, hydraulic cylinders, windows and windscreens). Some 230 parcels weighing between 1 kg and 1 tonne were shipped daily.

    On signing the contract, the Vice-President, Groupage and Express Geodis, said: "The trust placed in us by Liebherr highlights the capacity of Geodis to develop solutions tailored to specific needs, notably in terms of service quality and delivery times. The density of our network enables us to meet significant logistics challenges, as for Liebherr".

    Express and Parcels: 2011 News

    2011

    July - Geodis and Kiala formed an alliance that improved Geodis' express service offering. Kiala, as Europe’s number-one network of pick-up points covering five countries and the most complete network in France, joined forces to deliver a global transport and delivery service through a network of local relays.

    As an alternative to its home deliveries, Geodis now offered a relay delivery service with nationwide next-day express deliveries before midday – and before 10 am for 16,000 localities – Saturdays included, through 5,000 local delivery points.

    As of July 2011, Geodis operated a network of 112 France Express branches.
    Express and Parcels: 2010 News

    2010

    April - Geodis' acquisition of French parcels company Ciblex, announced on 17 March, was closed on April 22, with Ciblex becoming an integral part of the Groupage Division of the Geodis group. Ciblex will provide the Group's new "0-30 kg parcels" network.

    The parcel service would broaden the Group's range of small parcel solutions, especially in e-commerce, health, optics, high-tech products and spare parts, sectors in which Ciblex plays a leading role. With a 700-strong workforce and more than 700 subcontractors, Ciblex was a specialised autonomous network able to manage late collections, up to 8 pm in Ile-de-France, for next-day deliveries before 8 am, 9 am, 10 am or midday, depending on the service required. The agreement will also round out the Geodis transport offering in Belgium. 


    March - Geodis acquired Ciblex, France's fourth-ranked groupage operator and a specialist in small parcel express delivery. Geodis said that it was pursuing several objectives through the acquisition.

    It wished to:

    • reinforce its position in the parcel service, a market that had developed considerably over the last few years mainly with the growth of e-commerce in which Ciblex was a leading operator.
    • develop its technical expertise specific to parcel processing, relying on an independent network of more than 700 service providers.
    • improve its value-added services offer that met the needs of the Group's customers mainly in the sectors of e-commerce, healthcare, optical, high tech and spare parts.
    • complete the Geodis transport network in Benelux.

    The director of the Groupage/Express division, said: "I would like to welcome the Ciblex teams, who share the same values, quality of service and respect of commitments, which are vital for our customers."

    The deputy CEO of Geodis, concluded: "I am very pleased with this acquisition, which is part of our strategic priorities and enables us to enrich our global European service offering with specific expertise that will attract our international customers."

  • Freight Forwarding

    Freight Forwarding: 2013 News

    2013

    February - Geodis Wilson, SNCF Geodis' freight management division, signed a two year contract to manage the global logistics operations for international luggage manufacturer, Delsey.

    Geodis Wilson would implement a fully integrated logistics service with management of intra-Asia freight services through Vietnam and Southern China, contractual logistics with a permanent storage volume above 15,000 cu m and Full Container Load (FCL) deliveries worldwide to France, US, Latin America, Middle East and Asia Pacific.

    The Geodis Wilson logistics centre was located in Shanghai's Yangshan Free Trade Port Area. This was where 36,000 cu m of Delsey products for import and export would be handled yearly, as well as round-trip FCL trucking from Yangshan port to the distribution centre and Less Than Truckload (LTL) domestic distribution with a yearly volume of 4,000 cu m to Delsey customers in 37 cities in China.

    Commenting on the contract success, the CEO of SNCF Geodis, said: “This contract highlights Geodis Wilson’s strong presence in China’s competitive transport and logistics market. Our innovative approach will allow Delsey to increase productivity, reduce business complexity and optimise their supply chains with a single, best in class logistics provider.”

    Freight Forwarding: 2012 News

    2012

    Geodis Wilson announced it was expanding its trucking operations to include China, an extension of its existing routes through Singapore, Malaysia, Thailand, and the Indochina region. The full cross–border route between Singapore and China covers a total distance of 5,950 km and has a lead–time of 6–7 days.

    Customers would be able to choose between full container load (FCL) services, or less than container load (LCL) services. FCL containers would be sealed from door–to–door and opened only if required by border customs, while LCL containers would be consolidated at Geodis Wilson facilities along the route, and fed into the main road network by regional trucks.

    "One distinctive element of our cross border trucking product is the range of security measures. They enable us to monitor and protect cargoes and help to ensure that our clients' goods can be delivered on time. This includes solid contingency mechanisms, for instance in case of severe weather, complex customs clearing or for accident prevention", said Geodis Wilson's Regional Director Cross–Border Trucking.
    Freight Forwarding: 2011 News

    2011

    November - Geodis Wilson announced that it would open a distribution centre in Thailand which would be operational from the beginning of 2012.

    The 96,900 sq ft facility is located in Sri Racha, 75 km from Bangkok Suvarnabhumi International Airport, and 15 km from Laem Chabang Port.


    July - Geodis Wilson announced it was opening an 8,500 sq m distribution centre in Jebel Ali South within the free zone of Dubai, United Arab Emirates. The new distribution centre marked a strategic step in the company's global growth plan: extending its freight forwarding services to a full-service contract logistics model in the Middle East region.

    "The demand for contract logistics is very high," said the Managing Director Geodis Wilson UAE. "Most companies trading via or in the Middle East need a hub solution for their business, and Dubai is undoubtedly the regional choice, with very good onward connections. Geodis Wilson runs its own freight network to cope with this demand, including trucking services between the various countries and a 24-hour on-line customs service."

    Geodis Wilson invested about €1m into the Jebel Ali distribution centre, now providing a full range of supply chain solutions, including warehousing services, inventory, labelling, bar-coding, packing pouches, blisters, vendor management as well as domestic and cross border distribution.

    New business included the handling of IBM hardware and spare parts for dispatch to other points in the Gulf region; including Abu Dhabi. For another global customer stationery and personal care products would be hubbed through the new centre, arriving from France in containers for storage and then distributed to 16 countries in the region including Saudi Arabia, Bahrain, Oman, Kuwait, Qatar, Pakistan, Jordan and Syria.


    July - Geodis Wilson announced the launch of a new vertical business unit dedicated to serving the logistics needs of luxury hotels and resorts and their suppliers worldwide. Geodis Wilson would provide dedicated integrated logistics solutions to this fast-growing market.

    "Geodis Wilson expects to become a single-source shipping solution for many of the top-tier companies in this market," said Geodis Wilson's global director Luxury Hotel & Resort Logistics. "These highly recognisable brands and their entire supplier base want a dedicated logistics partner. We created this new business unit to ensure they receive the white-glove services they expect and require."

    Geodis Wilson's Luxury Hotel & Resort Logistics service would be operated by dedicated teams and project managers, regional competency centres and a global hotel logistics control tower, providing a variety of global and domestic freight services, including: freight consolidations, insurance, customs brokerage, warehouse services, FF&E installation, OS&C delivery, customised freight control management and dedicated consultation.


    June - Geodis Wilson, the freight forwarding arm of SNCF Geodis, acquired US based One Source Logistics, a non-asset based freight broker that specialises in providing domestic transportation services focused on truckloads and less-than-truckloads.

    “Taking over One Source Logistics is a first step in the company’s growth strategy in the U.S.,” said Philippe Gilbert, Geodis Wilson’s executive vice president. “With the extended link to domestic services in North America we are able to satisfy the needs of a wide range of our air freight and ocean freight clients.”

    Geodis Wilson CEO Jean-Louis Demeulenaere said the company planned to at least double its freight forwarding business in the coming five years through external and organic growth.

    Demeulenaere said the company’s focus on the American market had already proved a success with revenue of $1bn across the entire region.

    SNCF Geodis did not reveal the price of the acquisition.
    Freight Forwarding: 2010 News

    2010

    August - Geodis Wilson expanded its Atlanta operations into a new, larger facility encompassing 84,000 sq ft (7,800 sq m). The Atlanta operation provided air freight, ocean freight, customs brokerage, domestic forwarding, warehousing & distribution and other freight management solutions. Geodis Wilson Atlanta was also a primary US air freight gateway to Europe, with regular consolidations. "The newly expanded Atlanta facility will be a model for future growth and expansion in the US market for Geodis Wilson," commented the Chief Operating Officer Eastern USA. 

    "The well established trend in manufacturing growth throughout the Southeast has been apparent for quite some time with increases in export and import activity," said the newly appointed Southeast US Regional Manager and acting Branch Manager for Atlanta. "With our newly expanded warehouse and gateway, and with our enhanced security and compliance programmes, we are in a prime position to service the market's continually growing freight transportation needs in the critical industries throughout the area including automotive, industrial manufacturing, fast moving consumer goods, aviation and furniture." 

    Geodis Wilson had also invested in the necessary infrastructure in Atlanta to become one of several new Certified Cargo Screening Facilities (CCSFs) in the United States. This investment provided Geodis Wilson with the equipment, facility, security enhancements and trained staff in order to provide shippers with a fast, efficient, secure, and predictable cost option for screening freight in compliance with the TSA's (Transportation Security Administration) new 100% cargo screening mandate for all passenger aircraft.

    Geodis Wilson Atlanta served as the air freight gateway for the entire region, including Georgia, South Carolina, North Carolina, Tennessee, Alabama, and parts of Florida and Virginia.


     

    March - SNCF Geodis acquired Bertola Servizi Logistici, becoming one of the top three Italian logistics players, it claimed.

    Through the acquisition, Geodis doubled its storage area in Italy, where it already had 18 sites, and increased its presence in Veneto, the country’s second-most important logistics region.

    With overall revenue of €400 million and a workforce of more than 2,000, Geodis became one of the leading multi-business-line service providers in Italy with a full service offering: groupage, full-truckload transport, contract logistics, freight forwarding, and 4PL.

    Bertola specialises in sectors of strategic interest to Geodis, including FMCG, textiles, and automotive.

    "With Bertola we welcome a team of skilled professionals at the management and workforce levels. They have built an excellent reputation in Italy through their high-quality services," says Jean-Louis Demeulenaere, CEO of Geodis. "This acquisition is in line with the Group’s strategy with a full-service offering in Italy."

    Key figures for Bertola (at the time of the acquisition):

    • 2008 revenue: €60.9m
    • Italy’s tenth-largest provider of contract logistics
    • 92 employees
    • 286,000 sq m of logistics premises in Castel San Giovanni, Rovigo, Pavia, and Novara
    • Customers include: Giochi Preziosi, Banca Intesa Sanpaolo, Varta, Johnson Controls, Lavazza, Lindt, Xerox, Bosch, Fracarro, and Manfrotto.

  • Green Logistics

    Green Logistics: 2012 News

    2012

    February - Voies Navigables de France (VNF) and SNCF Geodis established a partnership agreement in an effort to promote the use of rail and waterways as a long-distance tranport method for goods.

    The partnership tied in with the commitments in France’s Grenelle environmental initiative on increasing the share of goods transported by rail and waterway.

    The agreement covered the resources to be implemented to generate synergies in existing long-distance goods flows, for example building materials. The partners would also work to identify the most appropriate and accessible multimodal platforms for the two transport modes and where necessary develop new, adapted platforms. All of the work achieved as part of the partnership would also concern major infrastructure programmes such as the Seine-Nord-Europe project. For the Paris region alone, the potential traffic concerned was estimated at some 10m tonnes a year.
    Green Logistics: 2011 News

    2011

    September - Geodis announced that, as of October 6, it would begin making deliveries for Carrefour in Lille using a hybrid refrigerated trailer truck. A new initiative in Geodis' Distripolis urban logistics system, this first-of-its-kind service would mean deliveries to the six Carrefour stores in the Lille city centre would be both cleaner and quieter.

    In May 2010, Geodis teamed up with Renault Trucks to test a unique hybrid vehicle equipped with a cryogenic refrigeration unit. The vehicle was proposed to several customers for testing, and the retailer Carrefour was first to request the new vehicle. A perfect fit with Carrefour's sustainable development strategy, this 26-tonne hybrid truck that complied with the Euro 5 standard would begin delivering goods to Carrefour stores in Lille starting in October.

    The thermal engine–electric motor combo in hybrid trucks lowered diesel consumption by an average of 20%. This represented an annual reduction in CO2 emissions of 10 tonnes. The use of liquid nitrogen, a non-toxic substance that emitted no CO2, as the refrigeration fluid made this vehicle even more environmentally friendly. This vehicle also had separate transport compartments, so both fresh produce and dry goods could be delivered. In addition, the cooling unit lowered the temperature twice as fast, making the truck particularly useful for the transport of vegetables.

    Green Logistics: 2010 News

    2010

    June - Geodis Wilson managed the transportation of two new wind turbine blades for its customer LM Wind Power on an Antonov AN-225, the biggest aircraft in the world. With a length of 42.1 metres the blades were the longest cargo pieces that were ever flown by an aircraft.

    Geodis Wilson was one of the logistics providers of LM Wind Power, a market leader in the international wind power industry, supplying rotor solutions to numerous wind turbine manufacturers in all main markets worldwide. The two transported prototype blades were produced for a new type of wind turbine that extends the possibility of efficient generation of clean energy.

    Geodis Wilson's Industrial Projects division had built a specialist team to handle wind energy logistics. This transportation involved a full turn-key operation including inland transportation from the LM Wind Power manufacturing plant in Tianjin to Tianjin Airport, China, loading onto the world's largest freight aircraft AN-225, customs clearance, supervision of unloading and final delivery from the Skrydstrup Vojens Danish Military Airport (SKS), the only Danish airport capable of handling this large move.

    "Our activities in the wind energy sector are well known in the market, but the move of these prototype blades of LM Wind Power allowed us to conquer a new level of complexity," said its Global Manager Wind Energy Projects. The Senior Vice President of Geodis Wilson Industrial Pojects added: "The fact that we have an established network presence in both China and Denmark, along with a dedicated air charter division, on-site expertise and technical support in this sector, certainly helped us to successfully manage this move for and together with LM Wind Power and Antonov Airlines."

  • Intermodal Transport

    Intermodal Transport: 2012 News

    2012

    February - Voies Navigables de France (VNF) and SNCF Geodis established a partnership agreement in an effort to promote the use of rail and waterways as a long-distance tranport method for goods.

    The partnership tied in with the commitments in France’s Grenelle environmental initiative on increasing the share of goods transported by rail and waterway.

    The agreement covered the resources to be implemented to generate synergies in existing long-distance goods flows, for example building materials. The partners would also work to identify the most appropriate and accessible multimodal platforms for the two transport modes and where necessary develop new, adapted platforms. All of the work achieved as part of the partnership would also concern major infrastructure programmes such as the Seine-Nord-Europe project. For the Paris region alone, the potential traffic concerned was estimated at some 10m tonnes a year.
    Intermodal Transport: 2011 News

    2011

    October - Normandie Rail Services, a new local rail operator serving internal terminals at the port of Le Havre, started up full activity on October 1, 2011. Following the transfer of Naviland Cargo flows to the new operator in August, Normandie Rail Services began handling the port delivery activities of Fret SNCF.

    Founded in August 2011, Normandie Rail Services was set up in August 2011 to manage port terminal services for rail companies at the port of Le Havre and Gravenchon. The company was created to respond to a need from the port authorities to develop rail transport and is notably part of the upcoming launch of a multimodal rail, sea and waterway platform at the site.

    With the creation of Normandie Rail Services, Fret SNCF and Naviland Cargo, which already operated a large part of the rail services at the port of Le Havre, are pooling their expertise and teams to better meet the needs of the port and of transport and shipping companies. Normandie Rail Services will focus on port services, subcontracted by rail companies that coordinate the overall delivery of goods for their haulage and shipping customers and which will continue to handle all routes outside of the port perimeter.

    Majority owned by SNCF Geodis, Normandie Rail Services has more than 100 employees, previously part of the teams at Fret SNCF and Naviland Cargo, who work under the collective labour agreement of the French rail sector. The company has four electric locomotives and five rail shunting vehicles and handles an estimated 20 trains a day.

    In its master plan for a new environmental approach to goods transport, SNCF Geodis has committed to backing the emergence of local rail operators working as part of a complementary fit with the rail freight business of SNCF.
    Intermodal Transport: 2010 News

    2010

    February - SNCF Geodis launched a new brand, CapTrain, covering its international rail haulage activities. The company said that the creation of CapTrain, following the acquisitions made over the last two years, had confirmed its objective to integrate and develop its various international activities.

    The new brand would bring together a range of its subsidiaries:

    • In Benelux, CapTrain groups SNCF Fret Benelux, Veolia Cargo Belgium, Veolia Cargo Nederland and ITL Benelux.
    • In Germany, CapTrain Deutschland groups together SNCF Fret Deutschland and Veolia Cargo Deutschland.
    • In Italy, CapTrain Italia groups together SNCF Fret Italia and Veolia Cargo Italia.
    In other developments, Freight Europe UK and VFLI Romania had been renamed CapTrain UK and CapTrain Romania.

  • Project Logistics

    Project Logistics: 2010 News

    2010

    June - Geodis Wilson managed the transportation of two new wind turbine blades for its customer LM Wind Power on an Antonov AN-225, the biggest aircraft in the world. With a length of 42.1 m the blades were the longest cargo pieces that were ever flown by an aircraft.

    Geodis Wilson was one of the logistics providers of LM Wind Power, a market leader in the international wind power industry, supplying rotor solutions to numerous wind turbine manufacturers in all main markets worldwide. The two transported prototype blades were produced for a new type of wind turbine that extends the possibility of efficient generation of clean energy.

    Geodis Wilson's Industrial Projects division had built a specialist team to handle wind energy logistics. This transportation involved a full turn-key operation including inland transportation from the LM Wind Power manufacturing plant in Tianjin to Tianjin Airport, China, loading onto the world's largest freight aircraft AN-225, customs clearance, supervision of unloading and final delivery from the Skrydstrup Vojens Danish Military Airport (SKS), the only Danish airport capable of handling this large move.

    "Our activities in the wind energy sector are well known in the market, but the move of these prototype blades of LM Wind Power allowed us to conquer a new level of complexity," said its Global Manager Wind Energy Projects. The Senior Vice President of Geodis Wilson Industrial Pojects added: "The fact that we have an established network presence in both China and Denmark, along with a dedicated air charter division, on-site expertise and technical support in this sector, certainly helped us to successfully manage this move for and together with LM Wind Power and Antonov Airlines."

  • Rail Transport

    Rail Transport: 2013 News

    2013

    June - Geodis Wilson announced the expansion of its Asia-Pacific operations to include domestic rail freight services in China, with intercontinental services between China and Europe also planned.

    The company stated that the expanded operations were a strategic response to the growing demand for rail freight transport in China. Geodis Wilson stated it was considered a viable alternative to road transport because of its safe, efficient and environmentally friendly nature. "In Geodis Wilson we follow closely the development of this segment, particularly when it involves intercontinental connections between China and Europe", said the Executive Vice President of Geodis Wilson.

    He added, "We are targeting customers who are looking for an alternative to airfreight with a longer lead time." Rail Transportation offered the advantage of lower costs versus air freight over medium to long distance routes.  It was also the only transport mode offering an integrated transport network connecting seaports, hinterlands and economic zones over vast distances, and across political and geographical borders.

    As part of a mixed rail, sea, air and road transportation solution, Geodis Wilson's new Chinese rail freight service would offer customised, flexible, and reliable door-to-door services. Shipment of goods on container block trains as well as all pre- and post-rail transportation services would be offered. These value-adds would include, pick-up, pre-carriage and on-carriage, reloading, control of trans-shipments, railway wagon planning, freight documentation and real-time tracking and tracing.

    Geodis Wilson would also be launching services for 20 and 40 ft FCL (full container load) and break bulk from China to Central Asia, Mongolia, Russia and Europe. This built on its already existing services to Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Mongolia.

    Rail Transport: 2012 News

    2012

    October - Fret SNCF announced that it had enhanced its multi-lots multi-clients, single wagon offer and extended it to international routes.

    The extended service would connect beyond France's borders on the rail line connecting Woippy (France) and Antwerp (Belgium), ensuring an end-to-end service. From early 2013, Fret SNCF would also provide this end-to-end offer for all Franco-Swiss traffic carried by Fret SNCF and CFF, its historic partner in Switzerland.

    The service possibilities in France were also extended. A direct link between Lyon and Mulhouse would be operational from the end of 2012, in addition to other domestic routes.

    The overall expansion of the service would supplement the 23 existing links already offered. The increase in the number of destinations responded to the needs of manufacturers, particularly those in the chemical industry.


    April - SNCF Geodis and Hupac had announced they were joining forces to expand their combined rail transport networks on the east-west European route via France and Belgium.

    Starting in April 2012, Hupac and SNCF Geodis would combine their networks via the Anvers- Dourges line, run by SNCF Geodis. The route would link Hupac's European network with the French domestic combined transport routes operated by SNCF Geodis.

    The company's announced that their customers would have access to a network of combined rail transport linking the Iberian Peninsula to the Far East with daily or weekly connections to eastern Germany (Schwarzheide), eastern Europe (Poland and Russia) and China.

    In Hupac's shuttle network, Antwerp and Ludwigshafen were the platforms for intermodal links with Eastern Europe, Poland and Russia and as far as China. The new products would be marketed jointly by the two partners.

    SNCF Geodis already ran the daily trains operated by Hupac between Ludwigshafen and Schwarzheide. Cooperation between Hupac and the SNCF group began in 2007 with the launch of a jointly run train between Antwerp and Perpignan, which had now been extended to Barcelona.

    "With SNCF Geodis we are developing the potential of combined transport across the whole continent of Europe, including the connections to and from Barcelona on the new UIC line and the establishment of links between France and Italy via Modane", stated the Managing Director of Hupac.

    According to the CEO of SNCF Geodis, "this strategic agreement is a decisive step towards achieving our commitment to expanding rail goods transport in Europe. I am delighted with this partnership, which confirms our ambition for combined transport."


    February - The director of Fret SNCF commented on the company's 2011 performance and the challenges it faced going in to 2012:

    She affirmed that the company was still aiming to reach a break-even position by 2013-2014, "Last year (2011), we reduced operating losses to €337m compared with €427m in 2010 and we aim to reduce the deficit further in 2012.

    She also commented on how Fret SNCF's loss-making single-wagon network would be restructured:

    "There was a pressing need to address the “non-sustainability” of our single-wagon network and at the end of 2010 we replaced it, launching a “multi-load, multi-clients” (MLMC) service.

    "We now have more direct routes and fewer interconnections, and customers benefit from greater transparency. We have stopped serving those points on the network that were complicated operationally and rarely used."

    Following the restructure of the single-wagon business, losses had fallen to under €100m and the company planned to achieve break-even in 2013.

    "Commenting on how the global recession had impacted Fret SNCF, she remarked: "There was a sizeable decline in the volume of traffic from end-2008 onwards. In the years leading up to the crisis we were transporting around 40 bn tonne/km annually. Last year, our traffic totalled 23bn tonne/km which was up slightly on 2010.

    "We are a far leaner operation now, having shed 25% of our workforce between end-2009 and end-2011 and reduced our locomotive fleet by 23%. Over the same period, our turnover has decreased by 13%, so we have become more productive. Downsizing could continue as we seek greater productivity gains."

    She also cited other factors for the company's continuing financial struggles: "Along with other operators, we have also been hit badly by serious difficulties in obtaining train slots on the French rail network, largely due to a vast programme of modernisation work being carried out and which is set to last until 2015.

    "The choice was made to carry out most of this work at night, when the majority of freight trains operate, so as to limit the impact on passenger services. The train slots “crisis” dogged us throughout 2011 and unfortunately is continuing in 2012."

    She added that intermodal traffic was suffering the most due to these delays, due to the fact that it is the most time-sensitive because trucks must synchronise with the arrival of trains.

    Commenting on whether 2012 would be a year of more favourable market conditions, she said that, "The slowdown which kicked in last autumn is still with us and shippers are telling us there is little or no market visbility. It will continue to be a rocky ride, but I remain optimistic that Fret SNCF is on the right track and will be able to take full advantage when things do pick up.


     
    January - SNCF Geodis’ financial results continued to be weighed down by its main rail freight subsidiary, Fret SNCF.

    The state-owned group announced a 2011 global turnover of more than €9.4bn, an increase of 6% on the previous year.

    Turnover from the rail freight division which included Fret SNCF as well as other subsidiaries, increased 4.2%, due largely to European development.

    However, according to union sources, Fret SNCF was in the red to the tune of €340m in 2011, following a €427m loss the previous year.

    While these figures had not been confirmed by SNCF Geodis, group chief Pierre Blayau told a French newspaper Fret SNCF’s operating losses last year had exceeded €300m.

    “We would have done better, but were penalised by two factors,” he said. “In 2011, like all rail freight operators, we had serious problems in obtaining the train slots we were looking for, due to repair and maintenance work on the [French] rail network.

    “Secondly, we felt the effect of some organisational issues at [network manager] RFF. On some south-east and south-west routes, capacity on the network was inferior to that of 2007.”

    Blayau said Fret SNCF’s performance also continued to be impacted by labour conditions, its workers having state sector status.

    “We don’t apply the same employment agreements as our competitors, and if we did we’d reduce our costs by 25%,” he said.

    “For 2012, the objective is to reduce our costs by 15-20% on the basis of traffic volumes remaining the same. We continue to eye a break-even position [for Fret SNCF] by 2013-2014,” he added.

    One area of the business where Fret SNCF has succeeded in reducing losses is single-wagon traffic, following major restructuring and a completely redesigned offering.
    Rail Transport: 2011 News

    October - Normandie Rail Services, a new local rail operator serving internal terminals at the port of Le Havre, started up full activity on October 1, 2011. Following the transfer of Naviland Cargo flows to the new operator in August, Normandie Rail Services began handling the port delivery activities of Fret SNCF.

    Founded in August 2011, Normandie Rail Services was set up in August 2011 to manage port terminal services for rail companies at the port of Le Havre and Gravenchon. The company was created to respond to a need from the port authorities to develop rail transport and is notably part of the upcoming launch of a multimodal rail, sea and waterway platform at the site.

    With the creation of Normandie Rail Services, Fret SNCF and Naviland Cargo, which already operated a large part of the rail services at the port of Le Havre, are pooling their expertise and teams to better meet the needs of the port and of transport and shipping companies. Normandie Rail Services will focus on port services, subcontracted by rail companies that coordinate the overall delivery of goods for their haulage and shipping customers and which will continue to handle all routes outside of the port perimeter.

    Majority owned by SNCF Geodis, Normandie Rail Services has more than 100 employees, previously part of the teams at Fret SNCF and Naviland Cargo, who work under the collective labour agreement of the French rail sector. The company has four electric locomotives and five rail shunting vehicles and handles an estimated 20 trains a day.

    In its master plan for a new environmental approach to goods transport, SNCF Geodis has committed to backing the emergence of local rail operators working as part of a complementary fit with the rail freight business of SNCF.


    September - The French state transport operator’s rail freight subsidiary, Fret SNCF, suffered a major body blow, losing a long-standing contract with key customer Gefco, the logistics arm of carmaker PSA Peugeot-Citroen.

    Gefco said that it was not renewing the contract “as a result of Fret SNCF’s new multi-load, multi-customer service not meeting expectations”.

    Nevertheless, Fret SNCF subsidiary Captrain would continue to carry automotive components for Gefco between its plant at Vesoul, in Eastern France, and Kalaga a fast-developing car manufacturing centre in Western Russia, said Gefco.

    From the new year, Gefco said it would be sharing the former Fret SNCF business between three private French rail freight operators: Euro Cargo Rail, a Deutsche Bahn subsidiary, Europorte (Eurotunnel) and Colas Rail.

    The loss of one of its top-five key accounts constituted a body blow to the operator, which had seen its traffic diminish as a result of the opening-up of competition in the sector in France and compounded by the economic downturn.
     
    It is almost certain to compromise the company’s recovery plans which make provision for attaining a financial break-even position in 2013. The company had made heavy losses, year on year, over the past decade.

    According to figures from rail network manager Reseau Férré de France (RFF), the market share of French private rail freight operators increased to 23% in the first six months of 2011, compared with 18% a year earlier.
    Rail Transport: 2010 News

    2010

    July - SNCF Geodis wholly acquired Ermewa, a major European player in wagon rental, operation and maintenance for the transport of hazardous and non-hazardous liquid, gas and solid products.

    At the time of the completion of the acquisition, Ermewa owned a fleet of 60,000 wagons, 23,000 containers and 16,000 small containers.

    Ermewa became part of the Asset Management entity of SNCF Geodis.


    February - SNCF Geodis launched a new brand, CapTrain, covering its international rail haulage activities. The company said that the creation of CapTrain, following the acquisitions made over the last two years, had confirmed its objective to integrate and develop its various international activities.

    The new brand would bring together a range of its subsidiaries:

    • In Benelux, CapTrain groups SNCF Fret Benelux, Veolia Cargo Belgium, Veolia Cargo Nederland and ITL Benelux.
    • In Germany, CapTrain Deutschland groups together SNCF Fret Deutschland and Veolia Cargo Deutschland.
    • In Italy, CapTrain Italia groups together SNCF Fret Italia and Veolia Cargo Italia.
    In other developments, Freight Europe UK and VFLI Romania had been renamed CapTrain UK and CapTrain Romania.

  • Reverse Logistics

    Reverse Logistics: 2010 News

    2010

    June - Parrot, a leader in wireless peripherals for mobile telephony, awarded the management of its supply chain and reverse logistics to Geodis Logistics. Following a call for tender launched in 2009, Geodis Logistics concluded a contract with Parrot covering stock management, equipment customisation and reverse logistics for its products. The award involved a multi–year contract to manage the key stages of the company's supply chain.

    As a result, since February, Geodis Logistics had been providing logistics services for Parrot, including customisation of equipment and assembling kits at one of its logistics hubs in the Paris region.

    The products concerned were essentially hands–free systems for mobile phones and top–of–the–range multimedia products, destined to be sold in over 60,000 outlets worldwide. Services also included order management for 80 countries in the EMEA and Latin America zones, supplying the products to Certified Installer networks, automobile accessory manufacturers, non–food superstores and department stores.

    "The technical complexity of our products and market considerations call for flawless distribution to our end customers," said Philippe Poussin, Parrot's Chief Production and Quality Officer at the contract signing. "We are convinced that Geodis Logistics' familiarity with this sector will enable it to provide the required levels of quality."

  • Road Transport

    SNCF Geodis: Summary

    SNCF Geodis is the transport and logistics division of SNCF Group (Geodis Group was wholly acquired by SNCF in 2008).

    SNCF Geodis is divided into three divisions:

    Global Offerings

    •Geodis - a global logistics provider that has five core divisions, Geodis Calberson (groupage and express), Geodis Logistics (contract logistics), Geodis BM (road transport), Geodis Wilson (freight forwarding) and Geodis Global Supply Chain Optimisation (4PL).  
    •STVA - automotive logistics provider that transports finished vehicles across Western Europe.

    Rail Freight Transport

    •Fret SNCF - is responsible for all of SNCF's rail freight transport. Fret SNCF's subsidiaries expand its services by offering road, rail and sea intermodal solutions.

    Fleet Management

    The following companies are responsible for the management of SNCF's fleet of freight trains, which includes leasing operations:

    •Akiem
    •Ermewa.

    Geodis, which forms part of the ‘global offerings’ division of SNCF Geodis, operates two road freight businesses:

    Geodis Calberson

    Geodis Calberson has a network of 300 sites covering 25 countries in Europe. It offers a range of services including: groupage, express, parcels, part and full loads and specialist distribution.

    •Geodis Calberson - groupage
    •France Express - domestic express transport
    •Geodis Euromatic - specialist distribution Parcel network - with the acquisition of Ciblex, this service meets the needs of e-commerce, as well as the sectors of health products, optics, advanced technology and spare parts.

    The Groupage division offers three different services: domestic groupage, letters and parcels (in cooperation with La Poste) and international groupage (consolidate shipments of 3 tonnes or less). The Groupage division includes all the Geodis Group's French subsidiaries operating in the Groupage and Express transport businesses, the Groupage & Distribution businesses in Italy, Spain, the UK and Germany as well as the Euromatic distribution network operating in France and Belgium.

    The France-based company was established in 1904 and became part of the Geodis Group in 1994, which was subsequently wholly acquired by SNCF in August 2008.

    © 2013 Transport Intelligence

    Road Transport: 2012 News

    2012

    May - The SNCF Geodis group expanded its groupage offering in Europe with an exclusive three-year partnership with Spanish company Buytrago.

    Geodis Calberson now relied on Buytrago for distribution to and from Spain and Portugal, while Buytrago relied on Geodis Calberson for deliveries across Europe.

    Buytrago had operated in the Iberian Peninsula for nearly 70 years. It employed 1,900 people and handled an annual average of 5.5m shipments via a network of over 60 depots.

    The two companies had implemented their partnership gradually in countries where Geodis handled its own groupage business, starting in the UK in January 2012 and followed by Italy in February and Belgium and France in April.

    The partnership was part of Geodis' strategy to develop its distribution activity in Europe and consistent with the company's objective to have European business account for 30% of global revenue by 2016. The Chief Executive Officer of Geodis, said: "The agreement with Buytrago demonstrates Geodis' ambition to strengthen its position in Europe and opens up broad prospects for us. It is a real asset for our customers since we share the same values on operational standards and customer satisfaction with Buytrago."


     

    April - SNCF Geodis acquired MF Cargo, a transport business serving FMCG and retail clients in Hungary. MF Cargo was complementary to Geodis Hungary, the company previously served as a transport subcontractor for Geodis.

    Geodis announced that the acquisition would provide it with a "true national distribution network in Hungary" and improve its capabilities for transporting international flows among the countries adjoining the European Union. The company hoped that the acquisition would enable it to become the local leader in FMCG and retail logistics.

    MF Cargo had estimated revenue of €21m in 2011. The company had a fleet of 154 tractors and 169 semi-trailers and employed 212 people.

    The CEO of Geodis, concluded: "I am very pleased with this acquisition. It advances our strategic priorities and enables us to broaden our capabilities with specific expertise and assets that will attract key clients in Hungary and more generally in Eastern and central Europe."

    Road Transport: 2011 News

    2011

    June - Geodis Calberson expanded its services in the UK with the opening of a new logistics facility in Birmingham to handle inbound and outbound European cargo for its premium Eurotop and Eurofirst services.

    The opening of the Birmingham international facility coincided with the launch of the company's new daily run to and from Italy that offered customers 72 hour door-to-door services for Eurotop and Eurofirst.

    The new facility would handle all the company's import and export freight movements that were previously managed by Watford Gap.

    The company said that Watford Gap would continue to handle the Fortec Distribution Network, the palletised side of Geodis Calberson's operations in the UK.

    "This move allows both the UK pallet business and our European services to continue to flourish. These are exciting times for Geodis Calberson," said Geodis Calberson MD Jamie Cuthbert.

    The Birmingham hub is built over 1,860 sq m on four acres of land and is located on the Middlemore Industrial Estate close to UK's motorway network, it offers storage space for around 1,500 pallets.

  • Service Parts Logistics

    Service Parts Logistics: 2012 News

    2012

    October - Geodis Calberson announced it had won a contract to manage the warehousing and UK & Ireland distribution of product for Sogefi, a global supplier of original as well as aftermarket parts for the automotive industry.

    The General Manager of Sogefi Aftermarket Division said: "Geodis, an established provider to the Sogefi Aftermarket Division in Europe with a proven ability to achieve high levels of delivery performance and distribution support, is now operating our aftermarket next day delivery service from a modern, future-ready distribution centre located at Lutterworth, East Midlands."

    Geodis Calberson received product from Sogefi's plants in Wales and from central stock in Europe and managed stock-holding and same day order picking and dispatch. Orders were delivered next day delivery to factories across the UK, with Geodis' wholly-owned subsidiary the Fortec Distribution Network and a parcel carrier sharing the workload.

    She added: "The decision to restructure our distribution service gives us a much better service level overall in the UK and Ireland. We are also confident that Geodis will ensure Sogefi achieves a robust and efficient next day service for all our distributor customers – including later order cut-off times."


Other related logistic markets

Supply Chains

  • Bayer

    2012

    December - After a partnership spanning eight years, Bayer Pharma was outsourcing all its pharmaceutical logistics to SNCF Geodis under a seven and a half-year contract.

    Geodis had taken over all of Bayer's laboratory logistics operations in France at the Saint Georges de Reneins site north of Lyon. This platform of around 15,000 sq m carried out logistics operations such as incoming orders, quality control, storage, unit order picking, labelling, packaging and preparation of shipments.

    Working from this automated site, Geodis processed all the health products distributed by Bayer to pharmacies and hospitals in metropolitan France and French overseas territories.

    A Geodis company statement said: "Authorised for pharmaceutical warehousing in Europe, Geodis Logistics is consolidating its position on the European health market, through ten health market lines (warehousing, clean rooms, controlled temperatures, etc.) on premises of 200,000 sq m at the heart of pharmaceutical technology parks, with 600 employees, and around 15 pharmacists."


Other related supply chains

News

  • 07/01/2014 Geodis Wilson appoints Igor Muñiz
    07/01/2014

    Geodis Wilson has announced the appointment of Igor Muñiz as Competence Head for Industrial Projects in Southeast Asia and the Pacific.

    This role will develop Geodis Wilson's industrial projects team in the region, where market growth is marked, and strengthen the company's offering of logistics services.

    Igor Muñiz will be based in Singapore from where he will coordinate Geodis Wilson's industrial projects freight management and logistics operations in Australia, Indonesia, Malaysia, New Zealand, Singapore, Thailand and Vietnam.

    He has more than 15 years of experience in the industry and joined the Geodis Group in 2008 as industrial projects Director for Spain and Portugal. Based on his expertise in European and Latin American markets, Muñiz has driven business development for Geodis Wilson in the region, leading a range of successful projects in key strategic segments such as oil & gas, power, mining, rail and renewable energy.

    Commenting on his appointment Muñiz said, "This move does not only enable me to expand my professional horizons, but also to contribute to the further growth of one of Geodis Wilson's strategic business areas."
  • 19/12/2013 Goodman acquires over 70,000 sq m of logistics space in Germany
    19/12/2013

    Goodman Group has announced the acquisition of two German logistics assets for €45.95m as part of its joint venture with Chambers Street Properties, a real estate company. The joint venture, known as Goodman Princeton Holdings, acquired the properties in Bremen and Bodenheim, which offer a combined total of over 70,000 sq m of warehouse space.

    The developments were completed in 2012 and are fully leased on long–term agreements. The approximately 29,000 sq m warehouse leased to Lear Corporation, a provider of automotive seating and electrical power management systems, is located in the Hansalinie Business Park in Bremen.

    The approximately 41,000 sq m multi–tenant warehouse in Bodenheim is leased to Geodis and Poco–Domäne, a furniture retailer. Following the strategic acquisition, the properties will be managed by Goodman's in–house property services team.
  • 10/12/2013 Geodis Wilson appoints new global Chief Information Officer
    10/12/2013

    SNCF Geodis Wilson has announced the appointment of Dean Devasia as Global Chief Information Officer; he will also join the Freight Management Board. This appointment is expected to strengthen the international outlook of the board and bring renewed focus on harnessing technology to deliver global strategic objectives.

    He joined Geodis in 1991 and has held a wide variety of positions in operations, sales, branch and regional management, and latterly IT.

    Kim Pedersen, Executive Vice President of Geodis Wilson commented "Technology is key to success in today's dynamic business environment, particularly in our global transport and logistics business, where our customers require a transparent and reliable flow of information to steer their supply chains. I am convinced that with the appointment of Dean Devasia we will further increase our innovation drive in this strategic business area."
  • 03/12/2013 Geodis Wilson appoints head for industrial projects division in Asia
    03/12/2013

    SNCF Geodis Wilson has announced the appointment of Igor Muñiz as Competence Head for Industrial Projects in South East Asia and the Pacific. This role will enhance Geodis Wilson's industrial projects team in the region, where market growth is strong, and strengthen the company's offering of logistics services.

    Igor Muñiz will be based in Singapore from where he will spearhead Geodis Wilson's IP freight management and logistics operations in Australia, Indonesia, Malaysia, New Zealand, Singapore, Thailand and Vietnam.

    Commenting on his appointment, Muñiz said, "This move not only enables me to expand my professional horizons, but also to contribute to the further growth of one of Geodis Wilson's strategic business areas."

Briefs

  • 13/02/2014 SEGRO moves to become major European warehouse developer
    13/02/2014

    The UK–based property company SEGRO has bought logistics property assets worth €470m in Germany, France and Poland from the property investment companies Tristan Capital Partners and AEW Capital.

    The deal extends SEGRO's move into the logistics property sector. The company which is structured as a 'REIT' (Real Estate Investment Trust') now owns a portfolio split across the continent with one third of its capital invested in Poland, just under one third in France and Germany with smaller amounts in the Czech Republic and the Benelux. Grouped together within 'SEGRO European Logistics Partnership' (SELP), the developments are generally new, with 80% being completed within the past five years and one– in Leipzig– yet to be finished. The newly acquired property includes a substantial proportion based in Germany, accounting for more than half of the value of the deal including warehousing complexes in Hamburg, Leipzig, Berlin and Ingolstadt.

    On its creation last year SELP was "seeded with €974 million of logistics assets and land", with this latest acquisition expanding that to €1.5bn including "2.3 million sq m of lettable space as well as 135 hectares of land, of which 22 hectares are already under development".

    SELP is a joint venture between SEGRO and the Canadian pension fund managers PSP Investment, the latter extending Canadian pension funds appetite for investments in logistics orientated infrastructure . Its objective is to create what its calls "a leading Continental European logistics platform". At its initiation SELP stated that its objective was to expand through organic growth or acquisition to at least €2bn worth of assets in the "coming years", which may imply further acquisitions.

    SEGRO said that the customer base for the newly acquired properties was similar to that of its existing one, with major logistics providers such as "Deutsche Post, Kuehne and Nagel Group, DB Schenker and Geodis" as tenants.
  • 31/07/2013 Changing landscape of Asia’s logistics sector creates new opportunities
    31/07/2013

    Asia–Pacific is a region undertaking a significant transformation. Long known as the manufacturing centre of the world, the region is now adapting to changes brought forth by the "new" global economy. With rising operations costs, declining airfreight volumes, ocean freight over–capacity and declines in manufacturing activity, some have questioned whether the region is losing its competitive advantage. On the contrary, these changes are creating new opportunities.

    For example, as manufacturers move further inland, the cost to transport goods to ports and airports may increase. Alternative solutions have been introduced by logistics providers such as DHL, DB Schenker and Geodis Wilson who have introduced road transport solutions connecting Asia to Europe. Hewlett–Packard has been using this alternative solution and has shipped more than 4m notebook computers from to Europe by train since 2011.

    Industry–specific solutions are also on the rise. These solutions, such as UPS' life–sciences distribution centres and DHL's fashion centre of excellence are designed to meet not only the international markets, but also the growing intra–Asia markets. In fact, the growing intra–Asia markets have also triggered the need for warehousing and distribution centres. During the first half of 2013, such companies as Kerry Logistics, Yusen Logistics and the Goodman Group have opened such facilities.

    South–east Asia is also presenting increased opportunities. As this region works towards becoming a united economic entity in 2015, infrastructure projects and a rising middle class are encouraging growth. Norbert Dentressangle, CEVA and FedEx Trade Networks are among the logistics providers who have already expanded into this region.

    Over the past years, Asia–Pacific has led the world as the centre of outsourcing. Now, as global economics change once again, it is, once more, reinventing itself. While manufacturing will continue to play a major role, this region is likely to emerge as the world's largest consumer market thanks to 60% of the world's total population residing in this region. As such, industry leaders and logistics providers will continue to invest in this region.

    To illustrate the changing region, Ti is pleased to announce a new addition to its Logistics Monitor series – Asia–Pacific Quarterly Logistics Monitor. This latest addition reviews and analyses the logistics and transportation market and its providers within the region, including such topics as economics and trade, the air, ocean and road freight markets, warehousing and distribution and industry–specific solutions.

    For more information on the Asia–Pacific Quarterly Logistics Monitor or on the series, please contact Holly Francis, E: hfrancis@transportintelligence.com or T: +44 (0) 1666 519907.
  • 29/04/2013 The state of the European road freight industry
    29/04/2013

    John Manners–Bell MSc FCILT, CEO of Transport Intelligence, recently spoke at the Motor Transport Directors' Club lunch at Multimodal 2013, regarding the state of Europe's road freight industry. In his speech he described the growth of the market and developments and trends such as company bankruptcies and the rising cost of diesel, before reaching some interesting conclusions.

    Below is a transcription of the speech John Manners–Bell gave at Multimodal 2013:

    Ladies and Gentlemen,

    I am delighted to have been invited here to speak on the state of Europe's road freight industry. I worked for more than 10 years managing a small family freight company and therefore I have a very good idea of the problems and challenges faced by independent operators. At the other end of the scale, I also worked for several years for UPS Logistics Group, which gave me a very different, 'big company' perspective.

    However big or small, the industry faces some major challenges: congestion, competition, the increasing burden of bureaucracy and a government which has many other priorities. I know this from the time I advised the UK shadow ministerial team on road freight policy, and the great difficulty we had in getting these issues onto the political agenda.

    Today, I want to provide an independent analysis of how the sector is performing – and the main drivers of the industry.

    Firstly, I'm going to talk about the market growth in terms of revenues and some of the reasons behind the growth; secondly, I want to talk a little about profit margins and what drives them; and thirdly, I'm going to take on the thorny subject of company bankruptcies and the rising cost of diesel, with some conclusions which may surprise you.

    How have companies performed?

    Firstly, let's look at how the major European operators performed in terms of revenues. After a stronger 2011, revenue growth came right down in 2012.

    If I had been standing here a year ago, I would have characterised the industry as being split between a stronger Northern Europe and a weak Southern Europe. However, in the past few months the economic contagion of Spain, Italy and Greece has spread. Now all the major road freight companies are complaining about difficult markets, including those in Germany and Central and Eastern Europe – previously the growth powerhouses of the industry. Here's a snapshot of the majors' company results.

    DHL

    • The Freight business unit generated revenue of €4.19bn in 2012, a 0.7% increase over the 2011 result
    • Volumes declined in Scandinavia and the Benelux countries, however higher revenue was generated in Germany and Eastern Europe.

    DSV

    • Organic revenue growth declined by 1.0%. The European road transport market continued to be adversely impacted by the economic crisis, with freight volumes declining throughout the year in Southern Europe, while Northern European and Eastern European markets suffered, particularly in the second half of the year. Decreasing activity in key markets such as Germany and Sweden particularly affected DSV Road.

    Geodis

    • Road haulage revenues fell by 4.8%.

    Norbert Dentressangle

    • Transport business segment remained resilient with revenue of €2.04bn, an increase of 3.7% year–on–year
    • The company singled–out its pallet distribution business as performing particularly well. The company did admit to losing volumes from some key customers, but said that it had gained market share overall.

    Dachser

    • European Logistics contributed €2.6bn to the group's revenue, closing the fiscal year with a slight growth of 1.4%
    • 'Many of our customers experienced 2012 as an economically extremely unstable year.'

    Kuehne + Nagel

    • Kuehne + Nagel noted that growth in the European road transport market stagnated. In particular the French and German markets, which were important for this business segment, suffered from the fall in demand in the second half of the year
    • Providers in the business were exposed to competition and heavy price pressure, which was due to high fuel costs, increased salary costs and the continuing shortage of transport capacity in the local delivery sector
    • In 2012, the segment reported a 6% increase in revenues.

    Looking at the sector as a whole, if we adjust for inflation, average revenues are where they were in 2007. We are also hearing reports of low and unpredictable consumer demand which may be affecting inventory policy. If so, this would represent a major cause of volatility in the road freight market.

    Rates

    Now you might expect with a flat–lining market, that rates would have been stagnant as well. However, this is not the case. Using a Road Freight Price Index which we at Ti have developed in conjunction with Freightex, it can be seen that European road freight rates have now surpassed the peak seen in 2008, just prior to the first recession.

    It may be slightly surprising given that we are now in the second stage of the double–dip recession that rates have not shown renewed weakness. We'll come onto the reasons for this shortly.

    What drives profit margins?

    Let's now turn our attention to the health of the industry and by that I mean its profitability. We've been tracking profit margins over the last ten years. For most of that time, they have remained around the 3.5% mark, although they dropped down markedly in the financial crisis of 2008–9 to about 2.5%. So the question that must be asked is 'what drives profit margins?'

    This is an area in which we have done a substantial amount of work. For a start – and perhaps very surprisingly – we found that margins were not particularly influenced by the price of fuel.

    It is generally assumed that rising fuel costs are not helpful for road freight operators, as they find it difficult to pass these charges on to customers. Generally the increases are handled better by the larger players, many of whom have agreements in place which result in surcharges being passed on directly. Smaller players either do not have these mechanisms in place or do not have the bargaining power to increase their rates in line with fuel pump costs.

    One way in which it is possible to test how well the market as a whole is able to pass on fuel cost increases to their customers is by examining the correlation between fuel costs and rates. If rates rise in line with changes in the price of diesel, it could be concluded that freight operators are successfully passing on these costs to their customers. In fact, from the high correlation (0.85) this does indeed seem to be the case.

    This is not to say that freight operators do not bear pain. There are significant cash flow implications (especially for medium–sized or small players) which have to outlay significant sums of money up–front for diesel oil. The greater proportion of their cost base which fuel makes up, the larger the problem, as it can take up to 90 days for a haulier to re–coup from customers the amounts paid out.

    Stronger link between margins and sales volume growth

    So if profits are not materially impacted by rising fuel costs, what are they affected by? Rather than just looking at input costs, we ran a correlation between volumes and margins, using as our proxy retail sales volume growth. The correlation in this case was much higher than between margins and fuel, suggesting that the most important factor for freight transport companies is freight throughput.

    Freight operators are able to make money once a 'break–even' point has been reached on each vehicle or on a network. This break even factor is of course influenced by input costs and freight rates. Our research seems to show that operators are good at managing the break–even point by passing on increasing costs (or at least a proportion of them) to customers through higher rates.

    However, they are less able to control volumes, especially when the industry is impacted by wider economic crisis. This seems to be the major reason behind fluctuations in profit margins.

    Company failures

    Let's now turn our attention to company failures and we can see a complicated picture emerging. As we have seen, an endemic lack of profitability characterises the European haulage industry. The logical conclusion of this is that there is a high probability of companies going out of business when faced by any economic headwind. After all, from the operating profit, the company has to pay:

    • interest and taxes
    • provide funds for investment in the business
    • and provide a shareholder dividend.

    If all the fleet is on operating leases and there are no assets this might be sustainable, but on most models a 3.5% margin would not be enough to sustain an asset based trucking business in the long term.

    Now anecdotal evidence suggests that, at the bottom of the market – if you can call it that – there is a continual churn of self–employed owner–drivers who work for and are, in some cases, 'burnt out' by larger companies.

    These owner–drivers have very little idea of depreciating their assets, in order to be able to replace them at the end of their life. In fact, the market is so competitive that even if they did, there is little likelihood that they could work beyond hand–to–mouth.

    It is very difficult to measure company births and deaths in the market at this level; we have to rely on what we are hearing. However, for larger companies, we are able to measure what is happening as we are able to use government statistics. And here, again perhaps surprisingly, there is a very different story. Company failures are at a five year low, after reaching a peak back in 2008. So why the difference between what is happening at the top and bottom end of the market?

    No evidence of link between fuel and company failures

    Now you might expect the rising cost of fuel to be a major causal factor in company failures. The rising cost of fuel is one of the biggest political issues which transport operators and governments face. In the UK, it was the reason for a wave of fuel strikes in the early 2000s, with operators making the point that increases in the oil price through market forces and taxation were driving companies out of the market.

    However, in actual fact there seems to be little evidence for this. Using official company failure statistics and a diesel pump price index, there does not seem to be a link between fuel costs and company failures.

    A strong positive correlation would have been expected if indeed the price of oil was a major factor in transport company bankruptcies; that is to say an increase of diesel would be expected to result in an increase in company failures. So again, if not the cost of fuel, what does influence whether a company goes bust or not?

    Company failures and interest rates

    Having lived through the early 1990s recession, when interest rates spiralled to the mid–teens, and having seen the catastrophic impact that that could have on over–leveraged companies, we decided to test out any potential link between interest rates and company failures.

    Of course, many road freight operators are highly leveraged, leasing road transport assets or borrowing finance to buy them outright. Hence, they are exposed to fluctuations in interest rates. Having run the figures, this resulted in strong positive correlation– suggesting that a rise in interest rates does indeed result in higher company failures. A low interest rate environment may well be one of the key reasons why company failures are around half of what they were four years ago.

    Freight volumes and company failures

    Rather than solely concentrate on the link between cost pressures and company failures, we also tested the relationship between fluctuating freight volumes and bankruptcies using retail sales as our proxy indicator. The logic of this was that the higher the throughput of goods through retail outlets the greater demand for freight transport throughout the entire supply chain as goods are replenished. This tested overwhelmingly positive and the conclusion of this evidence is that road freight transport company health can be directly linked to volumes.

    Although the economy has been stagnant, retail sales have continued to grow, and hence freight operators have seen low levels of failure. They have coped with higher oil prices by passing these on through higher rates and a low interest rate environment has proved benign.

    Conclusions

    Looking forward, when economic activity picks up, we can see a scenario when interest rates may well rise to control inflationary pressures (such as created by quantitative easing). If this impacts on shoppers' spend, this could create a hostile environment for freight operators i.e. falling volumes and increasing cost of finance.

    A 'catastrophic rate of failure' amongst smaller providers was not reached in the last downturn. However, this is not to say that economic conditions could not create the environment in which this meltdown could take place.

    Thank you very much for your attention.

    Further Information

    For more information on the European road freight market or if you would like Ti to undertake bespoke research in the sector, contact Ti's Consultancy team: jray@transportintelligence.com. Alternatively, you can purchase Ti's market report, European Road Freight Transport 2012, for just £1,095 online by clicking the report title.

    About the Speaker

    John Manners–Bell MSc FCILT is the CEO of Transport Intelligence. John started his working life as an operations manager in a freight forwarding and road haulage company based in the UK. Prior to establishing Transport Intelligence, he worked as an analyst in consultancies specialising in international trade, transport and logistics. He also spent a number of years as European marketing manager for UPS Supply Chain Solutions working at locations across Europe including France, Netherlands and Germany.

    He holds an MSc in Transport Planning and Management from University of Westminster and is an Associate of King's College London. He is a Fellow of the UK Chartered Institute of Logistics and Transport and a Member of the Logistics Global Advisory Council of the World Economic Forum.
  • 25/05/2012 Considerable interest for GEFCO stake
    25/05/2012

    The process of selling a minority stake in GEFCO appears to be proceeding rapidly. Press reports in Bloomberg and rumours in the private equity business suggest that there has been considerable interest in the offer.

    The Bloomberg article named two organisations in particular who were interested in purchasing the stake in GEFCO. One was the French state–owned railway, SNCF with Bloomberg citing trade union officials within the organisation as their source. The other was the investment arm of the French insurance company Axa who confirmed to Bloomberg their participation.

    It is also believed that GEFCO has attempted to attract the attention of other investors, including non–French private equity companies.

    Although GEFCO has not replied to Transport Intelligence's requests for confirmation, it is believed that the end of the initial stage of 'indicative offers' will be May 25th. The initial bids are believed to be non–binding.

    It can hardly be surprising that French institutions are taking an interest in GEFCO. Of particular interest, although not too surprising, is the interest of SNCF. It already owns the other major French logistics provider Geodis and taking a stake in GEFCO would mean it had equity in the two leading 'less than truck load' providers within France. French state owned enterprises have a habit of buying competitors so it can hardly been seen as a unique development, however it does raise questions regarding competition policy. Such questions are all the more pertinent as GEFCO is a major customer for rail services both in France and across Europe.

    The implications of the involvement of the 'Anglo–Saxon' private equity sector are also worth noting. Frequently aggressive and ambitious bidders, they may have the effect of increasing the price of any shareholding; although whether PSA Peugeot–Citroen, the present owner of GEFCO, would be comfortable with the short investment horizons of most of this sector is another question.