SupplyChainBrain: Weekly Newsletters

Georgia Pacific’s Perfect Size Strategy
Georgia Pacific is quite literally thinking outside the box with its new Perfect Size program. Perfect Size throws out traditional case-size guidelines for products and instead focuses on case-size efficiency.
Michael Gurry, senior logistics manager at Georgia Pacific, explains that the company initiated the program with its tissue, towel and napkin product line. The traditional case size for tissues sold to distributors and commercial businesses, he says, is 96 rolls. This case size, however, results in overhanging pallets that will not fit into typical racking systems. As a result, these units often had to be manually reconfigured at unloading.
"We decided to take a hard look at this product and see if we could design a perfect size case that would fit exactly on a 40-inch by 48-inch pallet," he says. "This was something of a risk because the 96-roll case has long been an industry standard, but we decided it was well worth it since a 40-inch by 48-inch footprint is far better for every distributor and every material handling application in the world."
The new case size has been embraced by customers and industry because it improves handling efficiency and unloading time, he says, which is particularly important given the new hours of service for truck drivers and associated penalties for driver delays.
Georgia Pacific now is extending the program to other product groups. "Our plan is to go through our entire line of products to see if we can manipulate things to get all case sizes within the standard GMA (Grocery Manufacturers Association) footprint," he says. "We are driving to the 40-inch by 48-inch size, which is ideal for transportation as well as for most racking systems."

TPG Plans to Brand all Divisions with TNT Name, Color
Assuming shareholders give their approval, TPG, the Amsterdam-based mail, express and logistics company, will begin to operate globally under the TNT name in 2006. Accompanying the name change will be a switch in company color to orange. Postal employees’ uniforms presently are red.
"With TNT, this global company will now present one strong brand around the world," says Harry Koorstra, the TPG management board member responsible for mail operations. "The name TNT will make us more recognizable internationally, and it also symbolizes the synergy between the three mainstays of our company—mail, express and logistics."
TPG employs more than 160,000 and operates in 200-plus countries.

Exel & Printing Press Maker
Exel says it will serve as a dedicated supply chain partner for TKS (U.S.A.) Inc., a manufacturer and supplier of printing presses to newspapers and publishers. Exel will provide customs brokerage services, warehouse management and distribution throughout the United States as part of the contract.
In December, TKS moved its central parts distribution center from Richardson, Tex., to an Exel-managed, 38,000 square-foot facility in nearby Irving. The new distribution center is located next to the Dallas-Fort Worth Airport in a foreign trade zone where products receive merchandising processing fee and duty reductions in addition to an ad-valorem tax exemption. As part of the new facility, TKS worked with Exel to open a 10,795 square-foot office.
Exel also will coordinate customs brokerage for air and ocean shipments originating from Tokyo. Upon arrival in the United States, Exel will manage transportation for airfreight parts shipments from Dallas to the central parts distribution center and sea freight finished goods shipments from the port of arrival to the end customer.
"In anticipation of increased demand forecast for the next three years in the U.S. market, we understand the critical impact of the supply chain in providing superior customer service," says Gregory K. Harabin, president and CEO of TKS (U.S.A.). "Relocation of our distribution center closer to the airport into a FTZ will produce savings from decreased [merchandising processing fees], duties and inventory property taxes, reduce transportation costs and increase cycle times."

Avaya Teams with Servigistics
Avaya, which provides business communications software, systems and services, has implemented the Servigistics service parts management solution.
The return on investment was characterized by one Avaya officer as excellent. "Servigistics enabled us to rapidly execute on our vision of achieving global service parts management across all parts and locations," says Jeff Gardner, Avaya director of aftermarket operations.
Avaya has deployed the Servigistics solution to manage its 20 million part/location pairs across 2,000 central and field service stocking locations worldwide. The Servigistics solution has reportedly reduced the company’s inventory investment by more than 10 percent and improved its on-time service levels.
The solution was implemented in 23 weeks across four divisions and is fully integrated with Avaya’s SAP system, as well as with several external organizations, including third-party logistics provider Choice Logistics.
Additional information is available at www.servigistics.com and www.avaya.com.

BAX Subsidiaries in China
BAX Global has formed new subsidiaries in Guangzhou and Shanghai to coordinate development of its growing network in China. BAX Global Freight Forwarding (Guangzhou) Company Limited and BAX Global (China) Co. Ltd., are known as wholly foreign owned enterprises under the Closer Economic Partnership Arrangement.
Through them, BAX Global can provide a range of integrated logistics services, including international and domestic airfreight, ocean freight, exhibition support services, related trucking and transportation consulting services and supply chain management.
Steve Dearnley, president of BAX Global for Asia Pacific says, "BAX Global is positioned for growth, with wholly controlled entities allowing maximum flexibility to suit customers’ specific requirements."

Transfreight Uses TMWSuite
Transfreight LLC, a third-party logistics services provider with North American headquarters in Erlanger, Ky. and Cambridge, Ont., has chosen TMWSuite from TMW Systems as the enterprise management software for its fleet. Transfreight designs, implements and manages customized supply chain solutions.
TMWSuite reportedly provides trucking companies and private fleets with an integrated suite of operations management software and services that addresses the transportation process from order entry through settlement to complete financials.
"We believe that TMW has the right blend of technology expertise and functionally rich software we need to continually advance our service offerings and support our customers for the long term," says Chris Painter, vice president of corporate development for Transfreight.
Transfreight is a wholly owned subsidiary of Mitsui and Co. Ltd. TMW Systems is based in Beachwood, Ohio. Visit www.tmwsystems.com for more information.

Logistics Services to Wireless Telephone Industry Provider
CellStar Corporation, a logistics provider to the wireless phone industry, and Dobson Communications, which provides wireless phone services to more than 1.6 million customers in rural markets in the U.S., have expanded their relationship.
The first direct-to-consumer program leverages CellStar’s ability to provide integrated back-end logistics and fulfillment. Previously, Dobson used multiple call centers to place and fulfill customer orders such as equipment upgrades and technology migrations, with each call center housing and managing the needed inventory. Dobson’s multiple call centers are now electronically integrated with CellStar, which houses and manages the inventory and its order fulfillment.
The second direct-to-consumer program reportedly has helped Dobson create a web sales offering. By partnering with CellStar, Dobson’s customers gain an extensive inventory of handsets and accessories available for online purchase. CellStar fulfills orders and manages the inventory, allowing Dobson to supplement product offerings in its retail store locations with a greater variety of products in its online portfolio.
Additionally, CellStar provides product distribution and fulfillment solutions for Dobson’s Motorola handsets, as well as a private-label program for Dobson’s entire OEM accessory line to its retail locations.
Visit www.dobson.net or www.cellstar.com for more information.

Acquisition of SCM, Logistics Software Developers, Marketers Continues Apace
Software companies have been attractive takeover targets of other developers of late, as evidenced by the absorption of PeopleSoft by Oracle. But it hasn’t always been competitors in the hunt. In several recent instances purchasers outside the software arena altogether have been interested in acquiring development companies or at least their assets. Some companies that have recently been purchased include Yantra, Mercia Software, Vastera, Delfour, Application Solutions Inc, and BridgePoint. Details follow:

Yantra Bought by Sterling Commerce
Sterling Commerce, a subsidiary of SBC Communications Inc., has bought Yantra Corporation, which provides distributed order management and supply chain fulfillment solutions, for a reported $170m in cash.
Sterling Commerce officials said they expect to operate the company as a new business division, headed by Devdutt Yellurkar, Yantra CEO. Yantra’s application suite will be incorporated into Sterling’s recently announced Multi-Enterprise Services Architecture (MESA). Sterling Commerce plans to offer the integrated set of composite applications both as a software solution and hosted service.
"The new product suite will help customers manage the end-to-end flow of orders, inventory, shipments and funds both inside and outside the organization, with real-time visibility into business processes and events," says Sam Starr, president and CEO of Sterling Commerce. "And, the combination of our capabilities will create new composite applications."
"The Yantra applications were purpose-built to pull together the dynamic and complex processes associated with warehousing, distributed order management, supply chain visibility and product information management," says Yellurkar. "When coupled with Sterling Commerce’s services-oriented architecture that was built for data synchronization and collaboration outside the firewall, the new combined supply chain solutions will offer users the best fulfillment and event management functionality in the industry."
Additional information is available at www.yantra.com. and www.sterlingcommerce.com.

Mercia Now Part of Infor
Infor Global Solutions, which supplies enterprise software solutions to manufacturers and distributors, has taken over Mercia Software.
Mercia offers two suites of supply chain planning products, which include demand planning, strategic inventory planning, distribution planning, and sales and operational planning functionality. The MerciaLincs Enterprise (MLE) suite is designed for Tier 1 and Tier 2 companies with sophisticated supply chain planning requirements. The MerciaLincs PC (MLPC) product is a point solution that offers deep functionality for smaller companies.
Mercia solutions are targeted at the parts (automotive, aerospace, etc.), consumer packaged goods, healthcare, and distribution industry sectors.
"[Mercia’s] highly regarded demand planning and forecasting products will benefit Infor’s existing and future customers across all of our verticals—automotive, process and discrete manufacturing and distribution," says Jim Schaper, Infor chairman and CEO.
Infor provides vertical-specific solutions in supply chain planning, relationship management, demand management, ERP, warehouse management, marketing-driven distribution, and business intelligence.
Visit www.infor.com for more information.

JPMorgan Chase Buys Vastera
A major development involves JPMorgan Chase Bank’s plan to acquire Vastera of Dulles, Va., and combine it with the logistics and trade services businesses of JPMorgan Chase’s Treasury Services unit.
Vastera’s solutions automate the required trade management processes associated with the physical movement of goods internationally.
"Through this combination, JPMorgan Chase will be the first global financial institution to offer a complete integrated cash, trade and logistics solution across the physical and financial supply chains in a way that maximizes benefits to our clients," says Paul Simpson, an executive with the Treasury Services unit. "Moving forward, this combination gives us scale and capabilities that are unmatched in the market place."
"This acquisition brings our clients the benefits of end-to-end global trade management solutions and it brings Vastera’s clients the benefits of JPMorgan Chase’s comprehensive financial services platform and product set," says Lori Hricik, executive vice president and head of the Treasury Services unit.
Visit www.jpmorgan.com/ts or www.vastera.com for more details.

ASI Taken Over by TECSYS
Supply chain management provider TECSYS says that it plans to assume control of Application Solutions Inc. (ASI), which provides warehouse management solutions and system integration services.
"We are continuing our expansion in supply chain execution with the addition of this highly successful Canadian technology company broadening our WMS practice to include the AS400 family and positioning us as an early leader in radio frequency identification device projects and mobile WMS solutions," says Dave Brereton, executive chairman and Co-CEO of TECSYS Inc. "ASI will continue to grow and expand from its Markham location and to develop and enhance WMS solutions for IBM’s iSeries product line. They will now tap into the expertise of TECSYS in enterprise web-based applications and service oriented architectures."
Headquartered in Markham, Ontario, ASI is an integrator of barcode solutions, warehouse management systems, managed network and wireless services for manufacturing, warehousing and distribution businesses.
TECSYS provides enterprise distribution and transportation logistics software solutions through three divisions: EliteSeries, PointForce, and TECSYS Transportation Systems.

BridgePoint & Management Dynamics
Management Dynamics Inc., which styles itself as the market leader in price and contract management solutions for the international transportation industry, has acquired BridgePoint, which offers supply chain visibility and event management solutions.
"The efficient management of global supply chains depends upon information flows that fully integrate suppliers and service providers with internal operations," said Jim Preuninger, CEO of Management Dynamics. "The BridgePoint acquisition offers Management Dynamics’ customers a strong foundation of proven solutions that synchronize supply chains to deliver faster cycle times, fewer stock-outs, and lower transportation costs."
BridgePoint provides a source of supply chain information to synchronize inbound and outbound logistics processes. Clients include Apple Computer, Best Buy, FedEx Supply Chain Services, Hyundai Motor America, Levi Strauss & Co., Procter & Gamble and the WorldWide Retail Exchange.
The acquisition is intended to expand the portfolio of Management Dynamics’ on-demand solutions to enable importers, exporters, logistics service providers, and carriers to efficiently manage complex, global supply chains.
Visit www.managementdynamics.com for additional information.

Delfour Assets Purchased
Professional services company Headwater Technology Solutions Inc. has acquired the assets of Delfour, a developer and marketer of third-party logistics solutions for ambient and temperature controlled warehousing facilities.
"Headwater’s expertise in the professional services industry coupled with Delfour’s knowledge of the logistics and distribution industries represents a powerful new strategic opportunity," says Markus Luft, president and CEO of Headwater. "Delfour’s SmartEnterprise 2 supply chain execution software suite brings a wealth of additional capability and performance to the range of products and services that Headwater currently offers. The integrated company will be able to apply a much stronger resource pool and broader range of expertise as Headwater becomes an increasingly recognizable force within the North American software and overall business community."
Historically, Headwater Technology Solutions has focused on the SAP and Microsoft environments, and on warehouse management, RFID, and materials management. SmartEnterprise 2 solutions run in Oracle environments under both the Unix and the Linux operating systems.
The companies are based in Markham, Ont. More information is available at www.headwater.ca.

Del Monte Awards Two Contracts To Saddle Creek
Saddle Creek Corp., which provides warehousing, transportation, contract packaging and logistics services, has been selected to open two facilities for Del Monte Foods, one in Atlanta, one in Forth Worth.
The purpose is to consolidate distribution of Del Monte’s diverse business units under one roof, according to Mark Bataska, Del Monte’s vice president of logistics. "These new facilities will allow our customers to consolidate their shipments by ordering most of our product lines from one location."
Del Monte operates 17 production facilities and 18 distribution centers in North America, and has operating facilities in American Samoa, Ecuador and Venezuela.
The Atlanta facility is 10 miles southwest of Atlanta’s Hartsfield-Jackson International Airport and covers 780,000 square feet. The 680,000-square-foot Texas DC is eight miles north of Fort Worth in the Railhead Distribution Complex. In addition, Del Monte’s RFID project for Wal-Mart will be located at this facility.
Saddle Creek Corp., a privately held distribution services company, provides integrated logistics solutions nationwide through a full array of warehousing, transportation, contract packaging and integrated logistics services.

Cube Route Delivers Reliable Insight
Reliable Food Supplies is using Cube Route’s on-demand Visibility service, which provides dispatchers with a real-time view into the status of deliveries made by vehicles in the company’s fleet.
"Before Cube Route, reports on any exceptions, changes or problems in the daily delivery schedule would only be available to us the following day. As a result, the majority of issues remained unresolved," says Tony Priaulx, Reliable Foods IT manager. "Cube Route provides an affordable and effective way for us to stay on top of our delivery operations. Our dispatchers simply log in to the web-based service at any time of the day to see the status of all deliveries in real time. Best of all, we got the results we were looking for without any financial risk as there were no upfront costs to implement the service."
The service also enables dispatchers to monitor pickup orders scheduled into each driver’s daily delivery route.
More information is available at www.cuberoute.com.

American Express Debuts Retail Solutions for SMBs
American Express Company’s subsidiary Tax and Business Services Inc. (TBS) says it has two new offerings specifically designed for small to mid-sized retailers: SAP Business One—The American Express Edition for Point of Sale, and SAP Business One—The American Express Edition for Retail Management.
Each is part of the American Express Supply Chain Solutions Suite, a portfolio of industry-specific solutions focusing on all phases of the supply chain cycle.
"Small and mid-sized retailers share many of the same challenges that larger retailers do. Until now, however, they did not have the same access to enterprise-class IT and supply chain solutions because most are unaffordable to them," says Harvey Goss, managing director of American Express TBS.
SAP Business One—Point of Sale is designed for small specialty retailers. The second solution, SAP Business One—Retail Management, is designed for larger retailers with at least one warehouse or distribution center and advanced inventory management requirements.
"Historically, small and mid-sized retailers have relied on home-grown supply chain and enterprise applications or cobbled together disparate systems to run their businesses," says Goss. " For the first time, SMBs can compete on a global scale with comprehensive solutions that are easy to purchase, easy to implement, easy to use and easy to maintain."
For more information, visit www.americanexpress.com/tbsalliance.

Grocers Co-op Deploys Cactus Data Synchronization Tool
Unified Western Grocers Inc. is using Cactus GDS Accelerator for BizTalk Server 2004 in its efforts to achieve global data synchronization with its supplier and distribution partners.
The accelerator is designed to allow users to quickly and easily connect to UCCnet and the Global Registry, and integrate accurate real-time data into existing management systems.
Unified Western Grocers is a retailer-owned wholesale grocery cooperative that supplies independent retailers throughout the Western United States. It reportedly has more than $3bn in annual sales.
"Making the decision to upgrade to Cactus GDS Accelerator was an easy one," says Greg Vick, executive director of supply chain and e-commerce systems at Unified. "By achieving global data synchronization, we expect to achieve significant savings in our supply chain by reducing data errors and through better integration with our existing business processes."
Deploying Accelerator reportedly will put in place a foundation for the management of EPCglobal data in future RFID implementations.
"It is encouraging to see that a broad cross-section of retailers and their suppliers are now starting to proactively engage in GDS [global data synchronization] programs," says Pierre Deschamps, Cactus Commerce executive vice president. "Cactus GDS Accelerator is the ideal choice for those retailers with Microsoft technology-based infrastructures to quickly achieve their GDS objectives at an affordable price."

Red Bull & OH Logistics
Red Bull North America, marketer of the popular Red Bull energy drink, has seen its supply chain get a boost of its own in the past year from Ozburn-Hessey Logistics.
OH Logistics, Red Bull’s single national provider, handled more than 16,000 shipments of the drink during 2004 and opened five locations in five states in the first 90 days of operation.
"Red Bull needed a premium logistics provider to help us achieve our supply chain strategies," says Rob Steere, director of operations for Red Bull. "Our decision to partner with OH Logistics was based upon their flexible warehouse network, transportation management capabilities and their strong information technology offering, which provides us with web-based visibility to our supply chain."
Scalability was critical. "We are experiencing explosive year-over-year growth rates," says Steere. "These growth rates are exciting, however it makes forecasting our warehouse space requirements more challenging. OH Logistics makes it possible for Red Bull to leverage their national network of multi-client warehouses to flex with our space needs."
Red Bull is using OH Logistics Synapse WMS and Transynd TMS. More information on Nashville-based OH Logistics is available at www.ohlogistics.com.

Rite Aid Uses TradeCard to Cut Global Trade Costs
TradeCard Inc., which offers on-demand financial supply chain products, says it is automating Rite Aid’s trade transactions with approximately 200 international suppliers, from purchase order delivery through payment.
Rite Aid operates 3,400 drugstores. Benefits it is looking for include streamlined procurement processes, the elimination of costly letters of credit, and improved supplier relations.
"We evaluated a number of solutions from banks and technology vendors, considering both their hard and soft benefits," says Jerry Cardinale, Rite Aid’s senior vice president of category management. "Our team unanimously preferred TradeCard’s web-based platform, primarily because of the visibility it provides. With minimal capital investment, Rite Aid and its suppliers can see the status of their transactions in real time. We expect our savings to be significant."
Letters of credit are one area where Rite Aid expects to see significant improvement. "We have to open up a letter of credit for our international suppliers, so that they can go into production," explains Cardinale. "This requires preparing documents, resolving discrepancies, and going back and forth with banks and suppliers. It’s a costly, labor-intensive process, both for our organization and our suppliers. All those inefficiencies trickle back into the cost of goods."
Through its web-based platform, TradeCard automatically creates, routes, matches and stores trade documentation—such as electronic purchase orders, supplier invoices, freight receipts, and other information—to facilitate payment and financing. Each party has access to view and amend documents as a transaction progresses. Payment decisions are automated based on supplier compliance to purchase order terms and conditions. Discrepancies are systematically flagged and managed online.
Information on TradeCard is online at www.tradecard.com.

Panalpina Aims to Raise Its Forwarding, Logistics Profile in North America
Panalpina, the Swiss-based freight forwarder and logistics provider, posted more than $4.8bn in revenues for 2003, and could top $5bn in 2004. Yet the company is hardly a household name in the U.S.
Now, David I. Beatson, Panalpina’s regional chief executive officer for North America, is looking to change all that.
Since being named to his position in June 2003, Beatson has been steadily building Panalpina’s brand identity in the U.S. He has bolstered the company’s sales staff and targeted new prospects, both larger companies and small to mid-sized businesses.
A new sales program involves Panalpina’s top management directly in individual customer accounts. The company has also solicited client feedback through a series of Customer Advisory Boards. Last April, when Beatson hosted Panalpina’s first executive board meeting to be held outside Switzerland, he also invited 22 current and prospective customers to attend two days of meetings at the regional headquarters in Foster City, Calif.
The arrival of Beatson, a former top executive with Emery Worldwide and Circle International, marked the creation of a new North American region at Panalpina, covering sales and service throughout the U.S. and Canada. Today, he oversees a staff of around 1,650 in 60 branch offices. Key accounts include businesses in high-tech, oil and gas, project cargo, automotive and healthcare.
Previously, Panalpina’s operations in the Western Hemisphere had consisted of a single division covering North America, Latin America and the Caribbean. Other geographic regions include Asia/Pacific and EMEA (the latter including Europe, Africa, the Middle East, Central Asia and the Commonwealth of Independent States). Each is headed by a regional CEO who also sits on the company’s executive board.
Beatson says the move to create a separate division for the U.S. and Canada has paid off in "strong, double-digit growth. We see our business growing as our brand name becomes established [in North America]." Panalpina is already a dominant force in Latin America, he adds, ranking first or second "in virtually every market there."
As with most logistics providers today, Asia is driving the lion’s share of growth in Panalpina’s air, sea and logistics business. Beatson says the company has seen higher volumes of North American freight moving to and from Asia. Africa has also contributed to the rise in business, primarily because of the company’s high profile in the oil and gas sector.
For most of 2004, Panalpina grappled with congestion throughout the transportation network linking Asia with the U.S. The company put up additional airfreight capacity and sought alternative routings for sea freight, including the Panama Canal for shipments traveling to the East Coast. Ocean carriers also made greater use of ports in the U.S. Pacific Northwest, to avoid lengthy delays at overtaxed Los Angeles and Long Beach.
Many industry observers say congestion will continue to plague shippers throughout 2005. Beatson believes the problem must be addressed through a combination of expanded facilities, additional carrier capacity and higher labor productivity. Still, he says, "It looks like we’re going to have a few more years of tough times."
Panalpina is working to streamline lengthy supply chains by eliminating stops at distribution centers wherever possible. That approach is part of the company’s strategy to emphasize a full range of logistics services on behalf of its customers. Most carriers and shippers can’t assemble the links needed to create a global, multimodal service, he says. "We become their control tower."
Currently, Panalpina derives around 46 percent of its revenues from airfreight services, 39 percent from ocean, and the rest from a variety of logistics activities, including customs brokerage, warehousing, pick and pack, and inventory management. In most cases, the company relies on subcontractors to provide the underlying services. "We try to remain as asset-free as possible," Beatson says.
He sees new opportunities arising from consolidation in the industry. Global logistics giants such as Deutsche Post AG and UPS have been gobbling up independent forwarders, creating worldwide networks with large customer bases and substantial economies of scale. Customers that are unhappy with the trend might seek out new logistics partners, Beatson says.
Panalpina has made some acquisitions of its own. Last July, it picked up the Scottish freight forwarder Grampian International Freight Ltd., which held a strong market position in oil and gas. Around the same time, Panalpina merged its business activities in Korea with International Aero-Sea Forwarders Ltd., a local airfreight forwarder.
Beatson sees 2005 as another year of strong growth for Panalpina, with the prospect of additional new business. He predicts double-digit growth in top-line revenue, gross profit and earnings before income tax (EBIT). (Net revenue for the first half of 2004 was nearly $2.6bn, up from $2.2bn in the same period of 2003, although EBIT and net income were down.) The North American region should reap additional benefits from Panalpina’s new domestic U.S. airfreight service, launched in 2004.
The outlook isn’t entirely positive. Possible wild cards include rising interest rates and higher fuel costs, the latter a particular problem in the low-margin transportation business. Says Beatson: "It will be another challenging year."

DHL Plans New West Coast Hub in Southern California
DHL has begun work on a new U.S. West Coast distribution facility in Riverside, Calif. The company said it would invest $65m in leasing and development of the new hub, part of a $1.2bn network expansion program throughout North America.
The West Coast facility, 60 miles east of Los Angeles, will allow DHL to expand its one-day ground services across California and into Nevada and Phoenix. It features an automated package-tracking system with high-speed communication links to DHL’s Global Data Centers.
Fred Beljaars, executive vice president for operations with DHL Americas, called the hub "a bridge between our east and west coast operations." To be constructed on the site of the March Air Reserve Base, it will include a 24-hour air control tower, aircraft support equipment and enhanced security.
Due for completion in the fall of 2005, the facility will occupy 262,000 square feet, with a 44,000 square-foot mezzanine floor. It will support nine flights per day into and out of the hub.

Colography Group Sees Rebound In U.S. Airfreight Market
The ailing U.S. airfreight industry will get a lift in 2005, propelled by a rebounding U.S. economy and a rise in international trade, especially with China, according to the Atlanta-based Colography Group Inc.
Three out of five categories of the domestic airfreight market will improve in the coming year, the firm said. They are: overnight packages of between two and 70 pounds, with expected year-over-year shipment gains of 1.6 percent; overnight freight above 70 pounds, at 1.2 percent; and deferred or non-next-day freight, at 1 percent. Overnight letters and envelopes will see a slight drop of 0.8 percent.
The only significant decline, according to the Colography Group, will come in the deferred package category, with an expected drop of 34 percent. Most of the decline will be caused by weakness in the U.S. Postal Service’s Priority Mail service, "which faces formidable challenges in the year ahead."
The new report predicts that U.S. air exports in 2005 will rise by 4.4 percent overall, to 87.8 million shipments. The total U.S. expedited cargo market, including domestic air, air exports, ground parcel and less-than-truckload, will move an estimated 6.76 billion shipments this year, topping the 2000 total of 6.7 billion shipments.
"However, the renewed optimism should not signal the industry is returning to its glory days of the 1990s," said Colography Group president Ted Scherck.

New Operator for Container Terminal on Staten Island
New York Container Terminal Inc. (NYCT) has taken over operation of the former Howland Hook port terminal on New York’s Staten Island. NYCT said it would oversee the continued transformation of the terminal into a "world-class port facility."
Developers are close to completion of a 38-acre on-dock rail facility, with adjoining warehouse, at the site. It will have a handling capacity of 250,000 containers per year. NYCT will be helping to complete the $180m project to link Staten Island to main rail lines in New Jersey.
The combination of on-dock rail and warehousing "will offer shippers significant cost savings for New York area distribution, versus current over-the-road truck transportation to distribution centers in central New Jersey," the operator said in a statement.
NYCT’s port terminal occupies a 187-acre tract of land on Staten Island. Together with the Port Authority of New York and New Jersey, it is investing more than $300m in improvements at the site.

Hong Kong Sees 6-Percent Rise in Cargo Throughput
Total cargoes passing through Hong Kong’s port grew 6 percent in the third quarter of 2004, compared with the same period of 2003.
Volumes for the period reached 55.1 million metric tons, port officials said. Inbound cargoes were up 6 percent to 33.6 million metric tons; outbound totals also rose by 6 percent to 21.5 million metric tons.
On a seasonally adjusted basis, total port cargo throughput grew by 1 percent over the same period of the previous year. Inbound cargo volumes were essentially flat, while outbound grew by 3 percent.

Vastera Takes Its Trade Consulting Business to European Union
Vastera Inc. says it has created a Trade Management Consulting practice for businesses in European Union countries that more than complements the software and outsourced trade management solutions it already offers in Europe.
As part of the effort, Vastera has named Scott Lander and David Merritt as Practice Leaders for the European Trade Management Consulting organization. They will manage consulting teams charged with helping EU businesses optimize their cross-border trade operations.
Among the Trade Management Consulting services being offered in the EU are import/export compliance program assessments, process design and implementation consulting, and consulting in such areas as global supply chain management and trade lane redesign.
"Creating an EU consulting practice is a natural progression of the development of Vastera’s global business and a service our existing EU clients have requested," says Tim Davenport, Vastera president and CEO. "Scott Lander and David Merritt bring a depth of knowledge and experience to European businesses seeking to speed product delivery, minimize duty and shipping costs, or ensure compliance with international trade laws."
Lander joined Vastera Europe at its inception in 1999 and has more than 20 years’ experience in international trade. He specializes in supply chain operations, customs compliance, strategic planning, manufacturing and international logistics. He began his career with HM Customs and Excise in the UK. Prior to joining Vastera, Lander was a senior consultant with Pricewaterhouse-Coopers in its World Trade Group.
Merritt joined Vastera Europe in 2001. He has more than 35 years in the compliance and logistics sectors of international trade. His expertise reportedly includes a detailed knowledge of EU import and export control regimes, laws, regulations, and prohibitions affecting international trade.
Visit www.vastera.com for more information.

DHL Solutions to Run KarstadtQuelle Logistics
DHL Solutions, a subsidiary of Deutsche Post World Net, is to assume control April 1 of distribution logistics for KarstadtQuelle AG, including the Unna/Holzwickede goods distribution center, the jewelry warehouse in Essen, the industry centers in Essen-Vogelheim and Brieselang, Brandenburg, and the regional logistics centers in Hamburg, Berlin, Kirchheim b. München, Düsseldorf and Karlsruhe. The logistics real estate alone comprises more than 700,000 square meters.
As part of the deal, the bulk goods and part-load operations of the mail-order suppliers Quelle and Neckermann will be run by DHL Solutions in future.
"The sale of these logistics operations is a major step in the reorganization of our group," says Christoph Achenbach, chairman of the KarstadtQuelle management board.
"Deutsche Post World Net, by its takeover of what is, at present, Europe’s largest logistics contract, is once more demonstrating its competence in the area of supply chain management," says Klaus Zumwinkel, chairman of the DPWN board of management. "No other company is in a position at present to take over so complex a structure and immediately guarantee a smooth supply to the department stores and delivery to mail order customers."

ICTS Enters Maritime Security Services Arena
ICTS Europe Holdings BV, reportedly the largest provider of aviation security services in Europe, has gotten into maritime security as well. It recently became a majority stakeholder in Maritime & Underwater Security Consultants (MUSC), which provides international ship, port and supply chain security consultancy services.
MUSC, headquartered in London, is said to be one of the world’s oldest specialists in maritime and cargo security. It has offices in Houston, Lagos, Piraeus, Singapore and Tallinn. ICTS is a subsidiary of Fraport AG Frankfurt Airport Services Worldwide.
MUSC is a consultant to Lloyd’s of London for the marine and energy markets, covering a wide range of maritime risks. It cooperates on the Sea-Sentinel, a web-based service for security and operational information at more than 8,000 ports and terminals worldwide.
ICTS Europe Holdings BV provides aviation security services to approximately 50 airports in Europe. Its customer base comprises more than 100 airlines, airports, cargo companies and government agencies.

Hair Care Company Uses WMS from Manhattan
BaByliss, a division of appliances manufacturer Conair that specializes in products for hair and personal care, has implemented a warehouse management system from Manhattan Associates at its 100,000-square-foot European distribution center at Iwuy, in the north of France.
With it, BaByliss is reported to have gained greater control over its outbound distribution operation in Europe. Added benefits—including a real-time view from the DC to stores—should result as transportation service suppliers integrate their systems with the solution.
Additional information is available at www.babyliss.co.uk.

‘K’ Line Sets Up Agency in Austria
‘K’ Line (Deutschland) GmbH has established a branch office in Vienna, which is responsible for company operations in Austria and Hungary.
‘K’ Line views Austria as both an important market and a strategic link to the growing economies in the new European Union members in Central and Eastern Europe.

Geodis Manages Chemical Company’s Bulk Flows
Geodis BM Chimie has entered into a contract to manage all liquid bulk flows from chemical company Rhodia’s 30 factories in Europe. Specifically, Geodis BM will manage 43 individual road tanker companies that are currently operating the transports for Rhodia. Geodis is among the 43 tanker companies, but the deal contemplates that some freight operators for Rhodia will become part of Geodis BM.
The contract is for three years, but renewal is conditioned on Geodis meeting its promises to increase productivity in transportation operations it controls.

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