ELAC / May 09 2014 By AntonisBy Antonis S. S.Antoniadis Antoniadis1 ELAC / May 09 2014 By Antonis S. Antoniadis
DefinitionDefinition ofof logisticslogistics
Logistics is regional, national and global . Logistics is defined as the time-related positioning of resource. It is also described as the “five rights”. Essentially, it is the process of ensuring that goods or a service is: •In the right place •At the right time •In the right quantity •At the right quality •At the right price
Origins and definition The prevalent view is that the term logistics comes from the late 19th century: from French logistique(loger means to lodge). Others attribute a Greek origin to the word: λόγος, meaning reason or speech ; λογιστικός, meaning accountant or responsible for counting .
2 ELAC / May 09 2014 By Antonis S. Antoniadis
LogisticsLogistics :: thethe depthdepth
Two extreme examples of “logistics”
ASSOCIATED PRESS / 01-10-2010 Sweden ups terror threat alert to 'elevated‘ “A Pakistani intelligence official, who spoke on the condition of anonymity because he was not authorized to speak with the media, said eight Germans and two British brothers were at the heart of the al-Qaida-linked terror plot against European cities and had been calling acquaintances in Europe to plan logistics .”
ITJ MAR 2011
3 ELAC / May 09 2014 By Antonis S. Antoniadis AndAnd sincesince wewe areare engineersengineers …… EngineeringEngineering && logisticslogistics
The logistician is quite often described as Logistics Engineer
He or she , is responsible to Design or analyze operational solutions for projects such as transportation optimization, network modeling, process and methods analysis, cost containment, capacity enhancement, routing and shipment optimization, or information management.
4 ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe historyhistory ofof logisticslogistics Logistics’ history is as old as human civilization since it is the means for development of any kind
A simple example for us engineers would be at around 2700 B.C.: Material handling technology in pyramid construction . Blocks of stone weighing several tons were transported and assembled at the construction site. To build the Great Pyramid of Giza, which is 146 meters high and weighs 6 million tons, the Egyptians needed sophisticated material transport equipment capable of moving the massive building blocks and putting them into place. Even today, we still cannot fully explain how this level of precision was achieved using the hoisting equipment and means of transport available around 2700 B.C
www.dhl.com
5 ELAC / May 09 2014 By Antonis S. Antoniadis
AlexanderAlexander thethe GreatGreat asas aa logisticianlogistician
Alexander the Great was considered from many scientists as the first logistician.
Timothy Van Mieghem writes in his “Logistics lessons from Alexander the Great”
•“He marched along rivers to provide easy access to sea transport which could deliver tons of supplies, compared to 200 pounds per beast” •“Alexander’ s 35.000 man army could carry no more than a 10 day supply of food when remote from sea transport” •“He timed his departure so the 30 day supply of rations, carried by sea transport, would last until 10 days after harvest at the first destination city. This provided a seamless food and water supply for his army until he conquered the next city.” •“He setup bases to provide shelter and supplies prior to army’ s arrival ”
6 ELAC / May 09 2014 By Antonis S. Antoniadis
GreeceGreece inin thethe ancientancient MediterraneanMediterranean
Sea has always been the best means of transport http://www.ancient.eu.com 7 ELAC / May 09 2014 By Antonis S. Antoniadis
LogisticsLogistics asas aa schemescheme
Airport Shop
Supplier
Production Warehouse
Port Home
Inbound Outbound warehouse warehouse supplier production transportation warehouse customer supplier production transportation Logistics warehouse Logistics customer
8 ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe historyhistory andand importanceimportance ofof containerscontainers inin internationalinternational tradetrade The idea of shipping products in containers is a very old one. •The ancient Greeks used sealed vases – or amphorae – to transport oil or wine . •Later cultures used large trunks to ship valuables aboard their sailing vessels. But containerisation is a modern phenomenon just over 50 years old. •McLean, boss of his own trucking business in North Carolina, was frustrated by the laborious methods of handling goods in the early part of the 20th century . On 26 April 1956 McLean’s prototype - the refitted Second World War tanker, the Ideal-X - sailed from Newark to Houston carrying 58 truck bodies with the wheels removed. •By 1957, he had already introduced the first of a series of vessels converted into specialised container ships that were able to carry boxes below decks as well as on deck. They were more efficient container carriers. Soon enough, his company was re-branded Sea Land Service , a name that summed up the ‘multi-modal’ union of overland and seaborne transportation. http://www.costamare.com ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe historyhistory andand importanceimportance ofof containerscontainers inin internationalinternational tradetrade •Sea-Land’s regular peacetime services went international in 1966 when the vessel Fairland departed New Jersey for a first cross-Atlantic voyage to Rotterdam with 236 containers on board . TEU = Twenty feet equivalent Unit = unit of counting containers The equivalent of about 124 million TEUs are being moved around the world by ship in a year (estimated loaded containers carried in 2009) .
http://www.costamare.com ELAC / May 09 2014 By Antonis S. Antoniadis
InternationalInternational trendstrends
Bigger markets Bigger needs lead to bigger distribution centers Warehousing function changes from storage to flow Flexible warehouse space required Multi-user facilities are growing in popularity Outsourcing of logistics activities is increasing Infrastructure availability and distance to market are crucial Proximity to alternative transport modes is growing in importance Satellite DCs
11 ELAC / May 09 2014 By Antonis S. Antoniadis LogisticsLogistics costcost International logistics industry is estimated in: 5,4 trillion € or 13,8 % of global GDP Source: COMMISSION OF THE EUROPEAN COMMUNITIES 336 f inal 28.6.2006 USA : 8,3% of GDP, 2010 In 1980 it was 17.9% . Logistics costs in Europe are lower because of the combination of older infra (train, roads, rivers) 7.15% of European GDP Source Council of Supply Chain Management Professio nals (CSCMP). 2009 Germany : 7,5% of GDP, 2008 (BVL) This cost is increasing due to: Heavier traffic conditions Source: Prof Lauri Ojala, World Bank, May 2010 Environmental specs Reduction of permitted drive China : 17,8% of GDP, 2009 (CFLP) hours Source: Prof Lauri Ojala, Intl Transport Forum 2012 0-4 Consumer needs More goods coming from Asia
12 ELAC / May 09 2014 By Antonis S. Antoniadis LogisticsLogistics costcost breakdownbreakdown Civil Engineers are interested in infrastructure
Infrastructure
Infrastructure
13 ELAC / May 09 2014 By Antonis S. Antoniadis LogisticsLogistics costcost inin somesome EUEU countriescountries
10,5% 14,8% 6,3% 8,5%
14 Source Eye For Transport ELAC / May 09 2014 By Antonis S. Antoniadis
MultimodalMultimodal logisticslogistics LogisticsLogistics ofof moremore thanthan oneone modesmodes
Air - Rail Germany: truck mileage reaches 27.2 billion km Heavy goods vehicles that are subject to road charging in Germany covered around 27.2 billion km on that country’s toll roads in 2013, a rise of 2.4% compared to the previous year. The performance of trucks registered in Germany rose by 1.3 %, Rail - Road whilst that of vehicles from all the other EU 15 member states shrank.15 ELAC / May 09 2014 By Antonis S. Antoniadis
MultimodalMultimodal logisticslogistics
Feeders Mother vessel
Sea – Sea
River – Rail - Road
Sea – Rail - Road
16 ELAC / May 09 2014 By Antonis S. Antoniadis MultimodalMultimodal logisticslogistics The river port of Vienna / Austria
1960
302.000 TEUs / 2009 17 530.000 TEUs / 2013 ELAC / May 09 2014 By Antonis S. Antoniadis MultimodalMultimodal logisticslogistics
HAMBURG 18 ELAC / May 09 2014 By Antonis S. Antoniadis
Greece
19 http://people.hofstra.edu/geotrans ELAC / May 09 2014 By Antonis S. Antoniadis StrategicStrategic pointpoint InfrastructureInfrastructure needsneeds toto bebe betterbetter
20 ELAC / May 09 2014 By Antonis S. Antoniadis TheThe prospectprospect ofof GreeceGreece GatewayGateway toto S.E.E.S.E.E. Greece is the crossroad between Asia – Africa and South Eastern Europe (S.E.E.) China is trying to reduce its inventory costs. This means that better transit times will reduce money cost, especially for expensive products Greece can be the exclusive hub for the Balkans and S.E.E. Huge companies have seen the challenge and already are using Piraeus as a hub (ZTE, HP, HUAWEI) New container ships are travelling in lower speeds in order to save cost and reduce CO2 emissions longer transit times 21 ELAC / May 09 2014 By Antonis S. Antoniadis TheThe 2020 biggestbiggest containercontainer portsports ofof thethe worldworld
Singapore (a non industrial country as China) was the top port until 2009 due to its geographical position and knowhow Dubai also is in a very good spot and increases its numbers every year Rotterdam is the biggest European port 22 ELAC / May 09 2014 By Antonis S. Antoniadis TopTop 1010 EuropeanEuropean containercontainer portsports
PORT MONITOR
Greek port handles 3.16 million in 2013 to climb box rankings. 2.52 million TEU at COSCO’ s terminals II and III 644 K PIER 1 PORT TECHNOLOGY COM.
685.000 TEUs at Cosco Piraeus Q1 2014 . Increase of 28% www.metaforespress.gr 23 ELAC / May 09 2014 By Antonis S. Antoniadis PiraeusPiraeus isis alsoalso oneone ofof thethe toptop MediterraneanMediterranean lightlight vehiclevehicle portsports Top European light vehicle ports 2013
Ra Port Units nk 1 Bremenhaven / 2.180.000 Germany 2 Zeebrugge / Belgium 1.942.998
3 Emden / Germany 1.228.542
4 Grimsby, Immingham& 950.000 Killingholme / UK 5 Antwerp / Belgium 760.633
6 Southampton / UK 744.390
7 Tyne / UK 644.000
8 London / UK 543.436
9 Vigo / Spain 495.700
10 Barcelona / Spain 488.462 http://www.automotivelogisticsmagazine.com March 2014 ELAC / May 09 2014 By Antonis S. Antoniadis
HubHub andand spokespoke theorytheory
25 ELAC / May 09 2014 By Antonis S. Antoniadis TransshipmentTransshipment
Transhipment is the transfer of containers from one vessel to another vessel bound for its final destination, whereas in transit. This is essentially the business PSA is in . Singapore’s strategic location in the heart of Southeast Asia and at the nexus of major shipping routes has made it an important logistic hub and conduit for world trade. Being the world’s top transhipment hub, Singapore is connected to 600 ports in 123 countries, with daily sailings to every major port of call in the world. With its unrivalled connectivity, many small feeder vessels bring containers to Singapore. At the Port of Singapore, these containers get loaded onto large vessels which will then carry the shipment to their final destination.
Singapore the No1 transshipment port in the world 26 ELAC / May 09 2014 By Antonis S. Antoniadis TransshipmentTransshipment
Why tranship? The value of transhipment lies in that it is more cost efficient and time saving than the vessel making a single direct voyage. If each vessel sails direct to every port, the number of journeys made will look like the above. If the vessels tranship via Singapore, the number of journeys is significantly reduced. About 85 per cent of the containers that arrive in Singapore are transhipped to another port of call . Shipping lines use PSA for these modes of transhipment: Hub & Spoke (Main Line Operator to Feeder) Cross Strings (Main Line Operator to Main Line Operator) The concept of transhipment truly connects the world and one is able to ship a container from anywhere to everywhere in the world.
Singapore the No1 transshipment port in the world 27 ELAC / May 09 2014 By Antonis S. Antoniadis TypicalTypical routesroutes fromfrom AsiaAsia toto EuropeEurope (Evergreen(Evergreen lines)lines)
Shanghai to Piraeus: 24days Ports of call: 6
Shanghai to Rotterdam via Piraeus 31 days. Ports of call : 7
Piraeus Rotterdam 7 days
If the ports of call are less it can reach Rotterdam in 27 days
28 ELAC / May 09 2014 By Antonis S. Antoniadis
TransitTransit timestimes PiraeusPiraeus isis alsoalso oneone ofof thethe toptop MediterraneanMediterranean lightlight vehiclevehicle portsports
“Our deep-sea carriers are calling fewer ports, which is decreasing our total transit time ,” he explains. “With lower volumes, our deep-sea carriers had also been calling ports in North Africa . These ports were congested, which increased transit times. Now, the volumes for our North African destinations tranship to short-sea vessels at Piraeus .” This change means that although the deep-sea leg is now slightly longer, the inland leg is much shorter for Mitsubishi.
http://www.automotivelogisticsmagazine.com/
29 ELAC / May 09 2014 By Antonis S. Antoniadis TheThe importanceimportance ofof SuezSuez CanalCanal AnotherAnother engineeringengineering masterpiecemasterpiece
30 ELAC / May 09 2014 By Antonis S. Antoniadis AA newnew waterwaywaterway betweenbetween GreeceGreece –– FyromFyrom –– SerbiaSerbia isis onon stagestage ofof researchresearch BACEVIC (Minister of Natural Resources, Mining and Spatial Planning): FEASIBILITY STUDY FOR MORAVA CHANNEL IS POSITIVE
BELGRADE, 10/10/2013 (Tanjug) - The feasibility study for the Morava channel is positive, Minister of Natural Resources, Mining and Spatial Planning Milan Bacevic stated on Thursday and expressed the expectation that the government will launch the talks on the project very soon. Bacevic presented the feasibility study drawn up by the Chinese company China Gezuba Corporation which shows that the project can be realised. The Chinese partners showed keen interest in joining the project implementation, the minister said and announced that he will meet with Chinese representatives on Saturday to ITJ magazine discuss the major project. 31 Ministry of foreign affairs of republic of Serbia http://msp.gov.rs/en/ ELAC / May 09 2014 By Antonis S. Antoniadis AA newnew waterwaywaterway betweenbetween GreeceGreece –– FyromFyrom –– SerbiaSerbia isis onon stagestage ofof researchresearch BACEVIC (Minister of Natural Resources, Mining and Spatial Planning): FEASIBILITY STUDY FOR MORAVA CHANNEL IS POSITIVE
Bacevic expects the talks on the project to be launched in the government soon, and underscored that the project should be realised through concession. The Morava channel project should be implemented on the regional level and it should connect the Danube with the Aegean Sea. The project should contribute to the development of agriculture, energy and tourism, Bacevic said. He noted that several smaller projects could be realised from the major project. adding that the feasibility study for the Morava channel should be completed now and the Serbian government should grant funds for this. ITJ magazine
32 Ministry of foreign affairs of republic of Serbia http://msp.gov.rs/en/ ELAC / May 09 2014 By Antonis S. Antoniadis EuropeanEuropean TransportTransport NetworkNetwork // TENTTENT
Same philosophy to a city transport network
33 ELAC / May 09 2014 By Antonis S. Antoniadis EuropeanEuropean TransportTransport NetworkNetwork // TENTEN --TT
Infrastructure TEN T Connecting Europe Corridors "Core network corridors" were introduced to facilitate the coordinated implementation of the core network. They bring together public and private resources and concentrate EU support from the CEF, particularly to: remove bottlenecks, build missing cross-border connections and promote modal integration and interoperability.
Greece has 1 Core Network Corridor crossing its country : The Orient/East-Med Corridor connects the German ports Bremen, Hamburg and Rostock via Czech Republic and Slovakia, with a branch through Austria, further via Hungary to the Romanian port of Constanta, the Bulgarian port of Burgas, with a link to Turkey, to Greek ports Thessaloniki and Piraeus and a "Motorway of the Sea" link to Cyprus. It comprises rail, road, airports, ports, RRT's and the Elbe river inland waterway. The main bottleneck is the railway section Timisoara – Sofia
34 ELAC / May 09 2014 By Antonis S. Antoniadis
FromFrom locallocal DCsDCs toto CentralizedCentralized EuropeanEuropean DCsDCs (ELC)(ELC) toto regionalregional DCsDCs (RDC)(RDC)
SOURCE : CAP GEMINI for PROLOGIS
35 ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe prospectprospect ofof GreeceGreece
Why not here? 36 ELAC / May 09 2014 By Antonis S. Antoniadis LogisticsLogistics plotsplots developmentdevelopment The model of Prologis, Gazeley and other similar companies does not exist in Greece. Is it a problem or a challenge?
Prologis is the leading owner, operator and developer of industrial logistics real estate across the Americas, Europe and Asia. We create value by developing and managing a world-class portfolio of high-quality logistics and distribution facilities, serving customers and investors as an 37integral part of the global supply chain. ELAC / May 09 2014 By Antonis S. Antoniadis LogisticsLogistics plotsplots developmentdevelopment The model of Prologis, Gazeley and other similar companies does not exist in Greece. Is it a problem or a challenge?
OUR BUILD TO SUIT APPROACH Total Assets Under Management* We have industry leading $27.3 billion experience in the development Funds of quality, cost effective and 15 funds across a broad risk/return environmentally sensible spectrum buildings. Our key strengths Divisions include listening and Americas, Europe, Asia responding to our customers' Countries needs, and developing 21 economically viable buildings Co Investment on time and to budget, every 15-50% time * As of 31 March 2014 www.gazeley.com. www.prologis.com. 38 ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe prospectprospect ofof GreeceGreece DistancesDistances toto S.E.E.S.E.E. citiescities fromfrom AthensAthens
Piraeus vs Rotterdam for South Eastern Europe locations
39 ELAC / May 09 2014 By Antonis S. Antoniadis
ATHENS ThriasioThriasio LogisticalLogistical areaarea AthensAthens PERIPHERAL ROA D TO HIGHWAY NORTH
AIRPORT AIRPORT THRIASIO (MILITARY) (MILITARY) MULTIMODAL CENTER ROAD TO (NOT SOUTH FUNCTIONAL)
MODAL SPLIT % IN EUROPE
ROAD TRAIN WATERWA YS GREECE 97,10% 2,90%
AUSTRIA 60,90% 34,80% 4,20%
BULGARIA 70% 25,10% 4,80%
CYPRUS 100%
GERMANY 65,70% 21,90% 12,40% RAILWAY TO THE SPAIN 96,10% 3,90% NORTH
ESTONIA 43,20% 56,80%
Source : sustainablelogistics.org total inland freight CONTAINER tonne-km in 2007 PORT 40 COSCO ELAC / May 09 2014 By Antonis S. Antoniadis ColliersColliers IntlIntl // IndustrialIndustrial rentsrents mapmap
Prices in Athens for land or rental were very high before the recession. Prime net rent: Now they are at last normalized but The top open-market tier of rent that could be not significantly lower than top expected for a unit of standard size, and of the highest quality logistics locations and specification (Grade A), in the best location in the market at the survey date. The figure excludes service charges and taxes, and does not reflect tenant incentives. Warehouse space: 500 square metres/5,000 square feet or more with up to 15 per cent office space, the balance being general industrial/logistics/distribution space with 6 to 10 metre/18 to 30 feet ceiling heights. Bulk space: 10,000 square metres/100,000 square feet or more with up to 10 per cent office space, the balance being general industrial/logistics/distribution space with 6 to 12 metre/18 to 36 feet ceiling heights. All loading is dock-height. Prime yield: The yield an investor is prepared to pay to buy a Grade A building, fully-let to high quality tenants at an open market rental value in a prime location. Lease terms should be commensurate with the market e.g. typically 5 yrs +. Net initial yield = First years' net income/purchase price (prior to deducting fees and taxes) 41 ELAC / May 09 2014 By Antonis S. Antoniadis
TheThe prospectprospect ofof ThessalonikiThessaloniki Thessaloniki is 500km closer (than Piraeus) to northern destinations Its port is connected to road and rail It is the only location in Greece with transmodal terminals (rail to road) for more than 10 years It is closer to the Balkans . Bosporus strait is a very busy pass for ships and therefore more loads could be forwarded to the Balkans through Thessaloniki instead of Constanta 95.177 ships passed through the Bosporus in 2010
42 ELAC / May 09 2014 By Antonis S. Antoniadis TurnoverTurnover ofof hugehuge logisticslogistics companiescompanies
2011 Rank Company 2011 Revenue in $ millions Base Country Coverage Notes Excludes Williams Lea 1 DHL Logistics $37,780 Germany Global (Corporate Information Solutions) division. 2 Kuehne & Nagel* $22,104 Switzerland Global Excludes asset-based portion of Germany Global 3 DB Schenker Logistics $19,865 Land Transport . 4 CEVA Logistics $9,593 Netherlands Global 5 C.H. Robinson Worldwide $8,741 USA Global Total Transportation Segment. Acquired Finland-based Wasa Denmark Global 6 DSV $8,162 Logistics OY in May 2011.
Acquired Australia-based Apollo Forwarding in February 2011 Switzerland Global 7 Panalpina* $7,331 and Norway-based Grieg Logistics AS in April 2011.
Estimated Forwarding, Supply Chain and Contract Logistics revenue only. Growth primarily from 2010 acquisitions. Acquired U.S.-based One Source France Global 8 SNCF Geodis $6,335 Logistics in June 2011, and acquired France-based Pharmalog and the night delivery business of GLS France in Sept. 2011.
9 Expeditors International $6,150 USA Global Forwarding and Logistics USA Global 10 UPS Supply Chain Solutions $6,058 segment only.
April 2012-- SJ Consulting Group Inc 43 ELAC / May 09 2014 By Antonis S. Antoniadis SustainabilitySustainability 33% of the Rotterdam loads, are transported via rivers!! Another 11% is transported by train Total : 44%
The new Gothard cargo tunnel has a length of 57 km
44