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R OYA L C AR G O

Keeping up with the demands of global logistics www.royalcargo.com


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After four decades of rapid growth in the ASEAN region, Royal Cargo is now targeting the status of a world-class total logistics provider by investing in the cloud-based cargo solution, CargoWiseOne Writer: Emily Jarvis Project Manager: Tom Cullum

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Unlimited Cargo

Horizons oyal Cargo has spent decades establishing a solid foundation and strong value proposition, in order to build a global network of companies and trusted agents and become recognised as a total solutions provider for cargo transportation and handling. For 37 years, the Company has demonstrated its ability to capitalise on industry trends and leverage the growth gained to strategically branch-out into new markets across the globe; including Germany, the UK, Singapore, Hong Kong, Vietnam, Cambodia, China, Palau, Guam and the US. Thanks to an economic boom in the Philippines in the early 90s, dictating an influx in demand for infrastructure projects, Royal Cargo has now shifted its focus to strengthening its vast operations and further improving core technologies; particularly investing in a cloud-based cargo solution, CargoWiseOne (CW1), to improve the process and service efficiencies offered to its clients. With 10 global offices in addition to its headquarters in the

Philippines, the Company is proud to have developed its own network of more than 350 partners and agents in more than 100 countries. “Annual revenue growth figures for the past three financial years stand at an impressive 42 percent, with a gross margin of 43 percent and net income of 45 percent. Partially a result of the major contracts we won in our project transportation business - but also our investments in technology - this further reinforces our longterm stance in the global logistics sector,� Royal Cargo President and Chief Executive Officer (CEO), Elmer Sarmiento details.

ASEAN integration

In recent years, the Philippines has gained the status of an emerging

Receiving of wind farm hub onto multi-axle trailer at Onri Port, Currimao, Ilocos Norte

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NEWTECH EQUIPMENT SPECIALIST COMPANY

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EWTECH delivers thousands of valuable cargoes and equipment units each year, serving numerous multinational corporations engage in mining, power generation, oil & gas explorations, project contracting & developing, manufacturing, equipment fabrications, brokering and forwarding.

Specialised Logistics Services > Freight forwarding International and domestic, including customs clearance

> Contract logistics Cold chain and logistics covering warehousing and distribution

> Projects and heavy lift transportation > Trucking service > Specialised services Premium Courier, the fast and efficient transportation of high value goods, and pharmaceutical products

> Liquid transportation solutions Including ISO tank containers and flexi tanks

> Crane rental and business process outsourcing

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Premium Courier is the dedicated arm in providing logistics management solutions for pharmaceutical and biotechnology companies

economy, with higher employment levels, low inflation and rising remittances from Filipino overseas workers just some of the elements spurring growth. Sarmiento further explains: “Considered the world’s largest centre for business process outsourcing, the Philippine economy is driven by the needs of the country, insular consumption and the consequent construction boom, especially in mass housing. We are seeing explosive growth in cities outside of the Metro Manila and there is a resurgence of interest from Japanese companies who are looking to relocate their manufacturing plants from China to the Philippines.” These wider industry and economic performance indicators are affecting Royal Cargo’s business in ASEAN in an extremely positive way, resulting in investment into regional expansion and the opening of a new branch in Singapore. “Further integration of the Philippines into the ASEAN region has resulted in the country gaining

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Dealing with cargoes as heavy as 90 tonnes, as long as 15 metres, as wide as six metres, and as high as 4.5 metres; NEWTECH trucks are renowned and recognisable not only for their striking orange and blue signature colours but also for their competitiveness and quality of services, and their competent staff and crew who devote time and effort to deliver units in the cheapest, safest and quickest way at all times. The Company’s current success is a culmination of an eventful history starting in 2006 as NEWTECH EQUIPMENT SPECIALISTS COMPANY was established to formalise the hauling activities of Oro Villa Construction. From 2006-2007, rampant buying by exporters of heavy equipment in the Philippines made a name for NEWTECH to be known in the entire Luzon Areas. Concurrently, Maxima Machineries, an authorised dealer of the Komatsu brand, tapped the exclusive services of NEWTECH for the delivery of brand new equipment to its clienteles all over the Luzon and Visayan regions. In late 2008, NEWTECH also earned the trust and confidence of Monark Equipment, an exclusive distributor of Caterpillar, and has been one of its heavy haulers since then. Simultaneously, Ericsson Telecoms also contracted NEWTECH for their entire Luzon Projects. NEWTECH auspiciously managed to position itself logistically as one of the top 20 heavy haulers in the Philippines towards the end of 2008.

T 63 02 7769010 up to 12 E newtech2006@yahoo.com neuteq2009@rocketmail.com

www.newtech-equipment.com.ph


NEWTECH EQUIPMENT SPECIALIST COMPANY

WE MOVE YOUR VALUABLE CARGOS & EQUIPMENT CHEAPER….FASTER…SAFER

We are equipped to mobilise or demobilise:

• Heavy equipment (Construction or Industrial) • Oversized pallets/cargos • Standard/Hi-cube container vans, ISO Tanks • Bitument tanks, Chemical tanks • High voltage transformers / Towers / Power generators • Industrial machinery & equipment

Newtech Equipment Specialist Company FAX: (632) 776 9010 -13 TEL: 0932 - 8602057 0928 - 5067457 0918 - 9915100 newtech2006@yahoo.com nauteq2009@rocketmail.com

Owned & operated by:

Nueteq Trucks & Trailers Co., Inc. 4247 Fastrack 2 Avenue, San Agustin Village, Moonwalk, Paranaque City, Philippines, 1709


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Blade trailer carrying a wind farm blade (L 49.55M x W 2.94M x H 3.65M) going up the hill in Brgy, Caparispisan, Pagudpud, Ilocos Norte

Awards ROYAL CARGO was named the Best Logistics Service Provider of the Year by Frost and Sullivan in 2015. Other awards include the Best Oversized Cargo Transporter in the Philippines and the Best Cold Storage Operator in the country in 2006, 2008, and 2009. The 3PL division bagged numerous awards from clients, including the Best Services Provider in Process Meats and various Goal-Zero Incident awards

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its status as a major hub for trade,” Sarmiento highlights. “However, this has placed increased pressure on the ports, and the port congestion experienced in Manila last year has put a dampener on attracting increased trade. However, I am confident this challenge will be overcome and we as a Company have positioned our agents to cater for the expected increase in inter-ASEAN trade,” he adds. In order to capitalise on these regional trade prospects, the Company is expanding its cold storage offering, from 9,000 to 17,000 pallet positions in an investment worth US$ 18 million. “We remain focused on our newly signed project contracts and developing the branches we have in Visayas and Mindanao into self-sustained locations capable of generating their own revenues. This involves ensuring that we have highly technical and skilled workers in position across the region,” the CEO explains.

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CargoWiseOne

Technology plays a very important role in Royal Cargo’s commitment to provide the necessary tools to optimise productivity and keep up with the demands of the global market. “Ultimately, these investments in IT are there to benefit the customer and allow us to respond faster to their needs. So we also utilise technology to support our internal business systems, communications and data exchanges with our customers and partners,” Sarmiento summarises. After years of research and significant investment, Royal Cargo became an early industry adopter of cloud computing, and has recently started to implement its CW1 cloudbased end-to-end solution; targeting the integration of all of the Company’s local branches, global operations, customers and partner agents across the world. “The software is designed to streamline our processes and increase the efficiency, visibility


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TMW

TMW provides express customs clearance for airfreight cargoes in Manila. A premium service customized for critical air shipments with the following key features: • FAST: No time wasted. Cargo is released 3 hours from arrival at Manila airport • NON-STOP: 24/7 operations to enable customs clearance during night time, weekends and holidays • COMPLETE: One-stop cargo clearance facility with dedicated team of Customs officials deployed at the TMW warehouse facility This service is suitable for all airfreight cargo consignments without limitation on weight, size, volume or value. Telephone: +63 2 879-6294 Telefax: + 63 2 879-6297 Email: tmwoffice@tmwol.com

Royal Cargo P3, Ninoy Aquino Avenue corner Multinational Village, Paranaque City, Metro Manila, Philippines

Michael K. Raeuber, CEO & Company Founder After establishing Royal Cargo in 1978, Raeuber has spent the past four decades fine-tuning his business into the world-class logistics service provider it is today. His determination and passion to succeed has been filtered throughout the Royal Cargo team and is reflected in the Company vision and mission. and profitability of our operations. It also amplifies our capability to provide the best possible service to all of our clients,” says Sarmiento. Once data is added to CW1, the information is instantly accessible across Royal Cargo’s worldwide operations. All data and information is hosted in three data centres across the Asian continent and is stored in the cloud, with remote access 24-seven. “The system simplifies the complex and repetitive workflow of the logistics operation and in turn, reduces the margin of error,” he adds.

Design, supply, install & commission

Processing Plants, Coldstores and Ice Plants Sales of: Compressors, Blast Freezers, IQF Freezers, Chillers and “Logix” Refrigeration Energy Management (REMS)

We Deliver Solutions Refrigeration Control System

Exclusive distributor of Logix in the region. Reducing Energy Use By Up to 40%

www.jandctrade.com.ph inquiry@jandctrade.com +63 2 3766085

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In recent months, the Company has migrated its email communication system into CW1 by working together with Microsoft. “This is to ensure that we achieve the best workflow levels possible, in the most reliable and secure environment to provide a more streamlined service to our valued customers and stay ahead of the competition. “Moreover, other internal documents are integrated within our cloud system including those relating to accounting, along with an ecommerce solution that allows us to better manage our sales and customer relationship management (CRM) services,” the CEO highlights.

Mobile technology

Further enhancing its invested interest in the best solutions for its customers, Royal Cargo has utilised mobile technology in order to provide customers with an additional visibility tool that enables them to track and

Royal Cargo’s door-to-door liquid transportation complies with the highest environmental and safety standards set by the International Maritime Organisation

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...we will continue to look closely at future opportunities we can take advantage of in the technology space in order to maintain the best efficiencies possible

trace their shipments via a smartphone application. “It is important that we keep up with our customers’ digital lifestyle, therefore we equip our delivery personnel with smartphones so they can capture and submit critical information including actual date, time and location of where their shipment was delivered, e-signature of the consignee, plus a real-time photo taken when the shipment was received,” says Sarmiento. By continuing to find ways to improve internal and external policies and processes, Royal Cargo has been able to sustain momentum in a growing global logistics market. The Company’s CEO puts such strong growth down to “Royal Cargo’s aggressiveness, full management support and seamless execution”. He concludes: “With a continuous improvement plan revolving around the continuous economic growth of the Philippines and ASEAN region and its presence on the world stage, we will continue to look closely at future opportunities we can take advantage of in the technology space in order to maintain the best efficiencies possible.”

Royal Cargo’s international and domestic freight forwarding division has provided a competitive sea and air transport services for more than 30 years

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Royal Cargo Building Sta. Agueda Avenue Pascor Drive Para単aque City Metro Manila 1704 Philippines T +63 2 851 6229 | +63 2 333 3000 F +63 2 851 7454 info@royalcargo.com

www.royalcargo.com

ROYAL CARGO  

Royal Cargo Business Brochure - Asia Outlook Issue 17

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