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Cont i n u e d Asia Outlook talks to Sven Hergemoeller, deugro’s Regional Vice President for Southeast Asia. Writer Ian Armitage Project Manager James Mitchell

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ounded in Germany in 1924, the deugro Group is one of the world’s leading project freight forwarding companies and has completed complicated turnkey logistics contracts on almost every continent. deugro is historically known for project logistics, specialising in turnkey projects and complicated cargo moves to and from major industrial sectors.

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It is also active in international freight services such as sea freight and airfreight. “We are a global leader in our niche of project logistics and freight forwarding,” says Sven Hergemoeller, deugro’s Regional Vice President for Southeast Asia. “deugro is a truly global presence but significantly we remain a privately held, family organisation in the third generation. We are highly specialised offering a diversified portfolio of services to a variety of clients located in every


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e x pa n s i o n for deugro

corner of the globe. Our company slogan is “Minds over Matter” and our strength and competitive advantage lies in our people – they are our most valuable resource. This, and close working relationships with our clients, distinguishes us from our competitors and provides a platform for future growth, flexibility and superior service.” He says deugro takes “the best minds to make the right moves.” “Our philosophy is to get the best people in the industry. Our people really do make the difference.”

deugro is a truly global presence but significantly we remain a privately held, family organisation in the third generation”

deugro has enjoyed substantial growth over the last year and it aims to continue to expand its core business in existing and new markets. “The last 12 months were actually fantastic for us,” says Hergemoeller. “Unconsolidated, we exceeded our sales as budgeted by 20 percent, which is substantial, and our net profit before tax was also exceeded. The group turnover in 2012 was in excess of 600 million euros and we employ today about 1,000 people in more than 60 strategically located global offices. We execute

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ALE ALE is a complete solution provider for the heavylift and transportation industry. With innovation at our core we are committed to investing in technology, systems and equipment to ensure we remain at the forefront of the industry. Crucially, we invest as much in our people as we do in our equipment, so we have a world-class management structure in place to support our technical potential. That means that as well as having the best project managers and engineers available today, we’ll also have the best tomorrow. Full planning and project management services are available as a ‘one stop shop’ and we can integrate multiple operations and execute them with precision in limited timeframes. Founded in 1983, we have grown steadily through the building of long-term relationships with key customers and the acquisition of successful specialist companies which have augmented our capabilities. With operating centres in Europe, North America, South America, Africa, Australia, the Middle East and the Far East, we are a truly global company that organisations from across the world turn to to push the boundaries of what’s possible with their high-profile projects. Email info@ale-heavylift.com

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mega projects for oil and gas, power generation and renewables as well as mining and a new business vertical: pharmaceuticals. Pharmaceuticals is an important market for us in Singapore as the local government wants to attract more science and technology industries. The group remains strong and we have substantial resources to operate effectively and expand further. “We are very active in Southeast Asia, the Middle East, Russia and North/South America and have been involved in some of the largest projects ever constructed in Columbia, South Africa, New Caledonia and Papua New Guinea, which are still ongoing. The challenge there is to make it all work and to the satisfaction of the client, of course.” According to Hergemoeller, around the world, decision making is becoming decentralised. Clients are making local decisions and such offices are largely autonomous. “That is a challenge for us. In the past the headquarters of a global client were always in charge but these days are over and today their regional and local set-ups act very independently.” deugro has achieved preferred freight forwarder status with numerous clients around the world and has invested heavily in QHSES, compliance, IT and transport engineering, amongst other support functions.

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“It is important to invest in such things as clients require an ever higher level of service and standards of compliance, business ethics, quality, health safety and environment at the lowest possible cost or even for “free”, which seems contradictory,” says Hergemoeller. “For compliance and QHSES, it’s not just phrases or buzzwords – these are things that must be lived by and ingrained into the company culture and management commitments, rules, regulations and processes. It must be tangible and measurable and with a permanent focus to improve the systems further. “The challenge is to manage these added costs, which is easier for a family enterprise like deugro than it is for an industry giant.” This represents an opportunity for deugro. “The big forwarders and logistics provider are allrounders with no strategic long term approach to the project logistics and project markets. There is always a lot of hire and fire going on and this is not good. Smaller specialised project forwarders and logistics providers still maintain a good quality but they often cannot comply entirely with QHSEs, compliance, IT


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Orient Project Shipping (S) Pte Ltd

The challenge is to manage these added costs, which is easier for a family enterprise like deugro than it is for an industry giant”

Orient Shipping has been established in Singapore since 1990 though the name is much newer as Company was originally trading as Coli Shipping prior to a rebrand at the end 2011. Whilst the name may have changed the team remains largely the same and most certainly with the same commitment to quality, reliability and accessibility. We are the local project shipping expert backed by a wealth of knowledge covering Asia, Australia and beyond. We specialise in offering project and heavy lift ship broking and associated services and offer commercial and technical advice, pre-emptive operational support, and have strong regional operating knowledge. We’re also a ship owner’s agent, commercially representing Dutch heavy lift ship owner Biglift in ASEAN and the multipurpose fleet of Hamburg ship owner Peter Doehle in ASEAN/AustraliaNew Zealand. On top of that, we’re an experienced broker for ocean transport of pre-assembled modules by self-propelled deck ship as well as float-on/float-off operations both by submersible vessel and barge. Orient Project Shipping is strategically located to be your service provider of heavy lift shipping expertise. We are immersed in the economics of development. Wherever infrastructural projects are undertaken there will be a demand for specialised shipping services which can accommodate the large or heavy components that such capital investment involves.

and many other requirements imposed by the clients. Therefore we see great opportunities to grow deugro’s business Sven Hergemoeller, deugro’s Regional and stay strong in the market. Vice President for “We will remain focused, and we Southeast Asia will also strategically build our own network. We comply with the clients high level requirements and therefore we are and will continue to be successful in the future. “In Asia you need extensive market knowledge and clients want 24/7 availability from our people and they demand very competitive pricing at highest level of service. In light of project related business in this part of the world, they require a solid and qualified transport engineering support. We employ transport engineers in Singapore who work in accordance with our corporate engineering standards and globally we have a number of competent support engineering centres. They are located in Germany (HQ), Russia, North America, India, Japan, Singapore and Australia.”

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Tel +65 6227 2026 Email shipping@orientproject.sg

www.orientproject.sg


ORIENT PROJECT SHIPPING

A world of difference...

+65 6227 2026 | shipping@orientproject.sg | www.orientproject.sg


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SAL Heavy Lift SAL - 16 specialized heavy lift vessels upto 2,000ts lift cap Engineered worldwide ocean transport The heavy lift reference point Tel +65 6884 6773 Email singapore@sal-heavylift.com.sg

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Modules. New Caledonia

Hergemoeller says that a “strong focus” will remain on improving services using technology and training in the region, while managing costs. “In terms of expansion, it is our policy not to reveal these plans until they have been put into place and then it is published on our website. However, we will further invest into transport equipment,” he explains. “These are very special and top of the line trailers to carry wind turbines. These trailers are located in China and South Africa. Africa is a target market for deugro, in general; we will grow more in this challenging market.” Many are eyeing Myanmar as an attractive destination. “With regards to Myanmar/Burma, and having said the above, I will comment that I was recently in the country with a colleague – a

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In Asia you need extensive market knowledge and clients want 24/7 availability from our people and they demand very competitive pricing at highest level of service. In light of project related business in this part of the world, they require a solid and qualified transport engineering support. We employ transport engineers in Singapore who work in accordance with our corporate engineering standards and globally we have a number of competent support engineering centres”


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MV “LONE” LOADING SHIPLOADER OF 1,100 MTONS, 47 M HIGH

WE INNOVATE SOLUTIONS ISM CERTIFIED ISO 9001 ISO 14001 OHSAS 18001

ENVIRONMENTAL PASSPORT

SAL Heavy Lift Singapore Pte. Ltd. www.sal-heavylift.com

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Rickmers-Linie Rickmers-Linie is the leading specialist in the global transportation of breakbulk, heavylift and project cargoes As reliable partners to our clients we offer tailormade, innovative and efficient transportation solutions from the factory up to the construction site The exceptionally high quality and reliability of our transportation services create lasting values for our customers, employees and shareholders We strive to meet and exceed the expectations and requirements of our customers We act swiftly and flexibly, thereby always focusing on solutions to fit our customers’ needs We provide our customers with highly competent and reliable transportation services, aimed at developing longlasting and honest partnerships

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We will also grow more in Indonesia. We have been a long time in this country and are currently beefing up our structure. We employ senior foreign talent to support our local operations and to further coach and guide. Indonesia is with no doubt a true emerging market”

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senior member of our management team – and we have employed a new country head for Myanmar and are currently busy to get our company registered. We will focus on construction materials, plant and equipment with an eye on Oil and Gas as the country is rich in natural resources. “We will also grow more in Indonesia. We have been a long time in this country and are currently beefing up our structure. We employ senior foreign talent to support our local operations and to further coach and guide. Indonesia is with no doubt a true emerging market. “China too is a growth market and we have just recently opened a new office in ChongQing. We now operate with five offices, located in Beijing, Shanghai, Qingdao, Shenzhen and now ChongQing.”

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This is an extremely exciting time for deugro and Hergemoeller is sure that has a positive effect on staff. “If I look back since I began with deugro, we have had a very successful decade. Part of this was also in Asia and experienced by myself - and who would not want to be part of a group that continues to improve its products and has been growing in its field. “It feeds back to our “can do” attitude as expressed by the “Minds over Matter” motto: We have the best minds and people in the business and this makes the deugro difference. Also we benefit from being a family business. We of course have a wellestablished hierarchy, but with access to the CEO and owner, sometimes you can quickly resolve matters that would probably take days and months in other organisations and this give us a competitive advantage.


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Westbound Round-The-World Service

Bem-vindo a bordo, América do Sul! Welcome on board, South America! Our new Westbound Round-The-World Service connects areas of economic growth in Asia, South America and North America. Taking it seriously we have just introduced the third vessel into this service, with more vessels to come. Watch out for our vessels and departures, not only in South America! More information and schedules on www.rickmers-linie.com

The best way to move your cargo

“Our aim going forward is to keep the best minds and not lose qualified people to the competition, while hiring the right human resources as we expand. We also have a desire to be involved in projects sooner to be able to have the time to properly prepare and research the best and cost effective transport solutions, also involving our transport engineering and risk management at a very early stage. Of course, we want more business. There is no magic formula and we will, as always, remain focused and determined. “What’s our secret? That’s a simple answer: people, people, people. Our loyal people who work for the company.” deugro (Singapore) Pte. Ltd. was recently awarded a turnkey logistics and freight forwarding contract for a neodymium-based performance butadiene rubber plant in Singapore. Once completed in 2015 the plant on Jurong Island will be the largest of its kind in the world and will serve the growing market for “Green Tires”, especially in Asia. “Major equipment will be coming from Germany and India,” says Hergemoeller. The new award is a follow up project of a successful completed job executed in 2012. “We are excited by growth prospects in the region and around the world,” Hergemoeller concludes. To learn more visit www.deugro.com.

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E nq u iries Tel (UK): +44 (0) 1603 559 151 Tel (SA): +27 (0) 21 527 0053 ben.weaver@outlookpublishing.com

SUBSCRIPTIONS

83 Clemenceau Avenue UE Square #15-03/04 Singapore 239920 Tel: +65 6273 2700 Fax: +65 6273 7879

Tel (UK): +44 (0) 1603 559 144

Email: sven.hergemoeller@deugro.com

ian.armitage@outlookpublishing.com

www.deugro.com

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DEUGRO  

Deugro Business Feature - Asia Outlook Issue 1

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