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Day: 8 May 2023

Logistics in Ukraine: Still Going

Posted on by David Priestman

Ukraine’s ports, where the lion’s share of freight traffic was carried out, are still closed, writes Alex Horbenko, Editor of Logistics in Ukraine. Airports are not working. Neither air passenger nor freight transport is possible. Ukrainian logistics has switched exclusively to rail and road transport. However, businesses operate 7 days a week: you can receive a parcel ‘the same day’, resolve issues online and make payments in any form. What challenges does the transport and logistics sector face, how does it overcome obstacles, and are there opportunities?

Maersk believes there are. In early March, the company issued an official release on direct bookings to Ukraine, which was suspended a year ago. For this purpose, a new weekly barge was launched from the port of Constanta, Romania, to the port of Reni, Ukraine. The service is now fully operational on two routes – via the Constanta/Danube Canal and the Black Sea. Transit time is approximately 1.5 days.

You can make a reservation and you will need to register in the system. Why is it important for the country’s logistics? The ‘Grain Corridor’ is only about grain, and not all of it. For other products from Ukraine, we need railways, road transport and ports like the Port of Reni. By the way, the port of Reni did not stop working for a single day last year, moreover, it dredged the water area and showed the best result in all the years of independence. The volume of cargo handled in 2022 was 6.5 times higher than in the previous year.

This means that the risks have been taken into account and the opportunities have been assessed. And they are. An interactive map of investment and business opportunities has been launched in Ukraine.

How is it useful and to whom? Potential investors. To find business partners, the map has an intuitive interface. Select a region, go to the region’s page in the lower right corner, look at project options, and send a request. The map contains 81 projects and covers 14 industries: agriculture, construction, transport and logistics, processing, food, fuel, light/heavy industry, tourism, education/development, mining, waste management, healthcare, administrative and support services.

Despite the war, investors are coming in. They are probably guided by Warren Buffett’s opinion: “Don’t hold on to money during a war. For the next 50 years, it is much better to have working production assets than pieces of paper.” Investors are building. Right now. In a time of war. Under rocket fire, they invest in development.

For example, Nestle Ukraine is launching a production hub in the Lutsk district of Volyn region. 40 million Swiss francs will be invested in expanding production by 1,500 jobs. The company plans to make this hub a food and culinary centre that will supply products to European markets.

What technologies are trending?

Prefabricated modular buildings. The Sklad Service company, which provides integrated logistics solutions, comments on this: “Prefabricated buildings can be installed in a couple of months and have a lifespan of 50 years, requiring less initial investment. They can be deployed on almost any hard site. This is an advantage for companies. For example, we recently installed a warehouse for Agromat company in less than a quarter, a 75-metre-long warehouse on a site with a height difference of 700 mm, with no complex foundation work.”

Companies in Ukraine are highly digitalised. Money transfers are made minute by minute, managers work through all social networks and messengers, and clients receive answers in a couple of minutes. Of course, there are companies that have left the market. But there are also those who have spotted an empty niche from competitors and have made a bet on winning.

 

Logistics in Ukraine: Still Going

Posted on by David Priestman

Ukraine’s ports, where the lion’s share of freight traffic was carried out, are still closed, writes Alex Horbenko, Editor of Logistics in Ukraine. Airports are not working. Neither air passenger nor freight transport is possible. Ukrainian logistics has switched exclusively to rail and road transport. However, businesses operate 7 days a week: you can receive a parcel ‘the same day’, resolve issues online and make payments in any form. What challenges does the transport and logistics sector face, how does it overcome obstacles, and are there opportunities?

Maersk believes there are. In early March, the company issued an official release on direct bookings to Ukraine, which was suspended a year ago. For this purpose, a new weekly barge was launched from the port of Constanta, Romania, to the port of Reni, Ukraine. The service is now fully operational on two routes – via the Constanta/Danube Canal and the Black Sea. Transit time is approximately 1.5 days.

You can make a reservation and you will need to register in the system. Why is it important for the country’s logistics? The ‘Grain Corridor’ is only about grain, and not all of it. For other products from Ukraine, we need railways, road transport and ports like the Port of Reni. By the way, the port of Reni did not stop working for a single day last year, moreover, it dredged the water area and showed the best result in all the years of independence. The volume of cargo handled in 2022 was 6.5 times higher than in the previous year.

This means that the risks have been taken into account and the opportunities have been assessed. And they are. An interactive map of investment and business opportunities has been launched in Ukraine.

How is it useful and to whom? Potential investors. To find business partners, the map has an intuitive interface. Select a region, go to the region’s page in the lower right corner, look at project options, and send a request. The map contains 81 projects and covers 14 industries: agriculture, construction, transport and logistics, processing, food, fuel, light/heavy industry, tourism, education/development, mining, waste management, healthcare, administrative and support services.

Despite the war, investors are coming in. They are probably guided by Warren Buffett’s opinion: “Don’t hold on to money during a war. For the next 50 years, it is much better to have working production assets than pieces of paper.” Investors are building. Right now. In a time of war. Under rocket fire, they invest in development.

For example, Nestle Ukraine is launching a production hub in the Lutsk district of Volyn region. 40 million Swiss francs will be invested in expanding production by 1,500 jobs. The company plans to make this hub a food and culinary centre that will supply products to European markets.

What technologies are trending?

Prefabricated modular buildings. The Sklad Service company, which provides integrated logistics solutions, comments on this: “Prefabricated buildings can be installed in a couple of months and have a lifespan of 50 years, requiring less initial investment. They can be deployed on almost any hard site. This is an advantage for companies. For example, we recently installed a warehouse for Agromat company in less than a quarter, a 75-metre-long warehouse on a site with a height difference of 700 mm, with no complex foundation work.”

Companies in Ukraine are highly digitalised. Money transfers are made minute by minute, managers work through all social networks and messengers, and clients receive answers in a couple of minutes. Of course, there are companies that have left the market. But there are also those who have spotted an empty niche from competitors and have made a bet on winning.

 

Otto Launch AMRs in Europe

Posted on by David Priestman

OTTO Motors, a leading provider of autonomous mobile robots (AMRs), announced their formal expansion into the European market at LogiMAT Stuttgart. With over fourteen years of robotics experience and more than 4 million production hours in mission critical environments, OTTO Motors is solving labour and safety challenges with its established AMR fleet at manufacturing facilities and warehouses globally.

As one of the first AMR providers to support the interoperability standard VDA5050, OTTO AMRs have made over 15 million autonomous deliveries last year alone across more than 200 facility installations globally. OTTO has delivered results for the world’s most recognized manufacturing brands with its pioneering AMR technology and award-winning software, designed to improve productivity and efficiency of material handling operations. GE Aerospace saved $1.3 million in the first year, while Faurecia Interior Systems achieved an 11-month ROI. Mauser Packaging Solutions increased throughput by over 600%, and Danfoss removed over 70,000 manual touches annually.

“OTTO Motors leads the material handling automation industry in North America with the world’s most comprehensive AMR portfolio and the largest AMR deployments with the deepest integrations globally,” said Matt Rendall, Chief Executive Officer and Co-Founder of OTTO Motors. “We’re expanding our unmatched expertise and experience into the European market to better serve our global customer base and improve material handling operations worldwide.”

OTTO AMRs are already driving productivity improvements for customers in Europe through our OTTO Certified Network. Hand-selected through our rigorous evaluation process, these experienced manufacturing organizations are certified and trained to develop, deploy and service end-to-end OTTO Motors’ solutions. OTTO Certified partners, including Guidance Automation and Orbel Grupo, are helping support the growing European market by designing, installing and maintaining the industry’s smartest AMR solutions in Europe.

“As demand for AMRs rapidly increases, we’re proud to be part of the OTTO Motors Partner Network and offer the world’s leading material handling solutions to improve productivity, safety and efficiency for our customers across Europe,” said Dr. Paul Rivers, Managing Director of Guidance Automation. “With over thirty years in the industry, our customers come to us for our experience, credibility and expertise. We’re committed to partnering with organizations that also leverage cutting edge, yet mature automation technology to optimize business operations.”

Otto Launch AMRs in Europe

Posted on by David Priestman

OTTO Motors, a leading provider of autonomous mobile robots (AMRs), announced their formal expansion into the European market at LogiMAT Stuttgart. With over fourteen years of robotics experience and more than 4 million production hours in mission critical environments, OTTO Motors is solving labour and safety challenges with its established AMR fleet at manufacturing facilities and warehouses globally.

As one of the first AMR providers to support the interoperability standard VDA5050, OTTO AMRs have made over 15 million autonomous deliveries last year alone across more than 200 facility installations globally. OTTO has delivered results for the world’s most recognized manufacturing brands with its pioneering AMR technology and award-winning software, designed to improve productivity and efficiency of material handling operations. GE Aerospace saved $1.3 million in the first year, while Faurecia Interior Systems achieved an 11-month ROI. Mauser Packaging Solutions increased throughput by over 600%, and Danfoss removed over 70,000 manual touches annually.

“OTTO Motors leads the material handling automation industry in North America with the world’s most comprehensive AMR portfolio and the largest AMR deployments with the deepest integrations globally,” said Matt Rendall, Chief Executive Officer and Co-Founder of OTTO Motors. “We’re expanding our unmatched expertise and experience into the European market to better serve our global customer base and improve material handling operations worldwide.”

OTTO AMRs are already driving productivity improvements for customers in Europe through our OTTO Certified Network. Hand-selected through our rigorous evaluation process, these experienced manufacturing organizations are certified and trained to develop, deploy and service end-to-end OTTO Motors’ solutions. OTTO Certified partners, including Guidance Automation and Orbel Grupo, are helping support the growing European market by designing, installing and maintaining the industry’s smartest AMR solutions in Europe.

“As demand for AMRs rapidly increases, we’re proud to be part of the OTTO Motors Partner Network and offer the world’s leading material handling solutions to improve productivity, safety and efficiency for our customers across Europe,” said Dr. Paul Rivers, Managing Director of Guidance Automation. “With over thirty years in the industry, our customers come to us for our experience, credibility and expertise. We’re committed to partnering with organizations that also leverage cutting edge, yet mature automation technology to optimize business operations.”

Government Action Needed to Decarbonise Logistics Sector

Posted on by David Priestman

The UK Government must ensure policy supports the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, according to a new report released today.

Installing rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the Capital, are two of the three recommendations made to Government today by planning and development consultancy, Turley, and the London Industry and Logistics Sounding Board (ILSB) as part of The Accelerating Logistics Towards Net Zero report. The report highlights the issues facing London’s logistics sector.

Logistics remains one of the largest emitting sectors in the UK. Transport alone produced 24% of the UK’s total emissions in 2020. While the Government has a programme to confirm the way forward for zero carbon HGV fuels by 2030, this new report argues this will be too late for the logistics sector. Instead, Turley and the ILSB are calling on Government to provide interim direction and policy support, to allow investment that supports the rollout of hydrogen or electric-powered HGVs for nationwide fossil-fuel free fleets.

Businesses like Amazon are already committing to a sustainable HGV future. The retail giant is investing £300m in the UK to decarbonise its fleet and replace with electric HGVs, electric vans, and eCargo bike fleets, as well as rolling out fast charging infrastructure. Other organisations are delaying due to the lack of clarity on the way forward. A second recommendation calls for further support to speed up the deployment of rooftop solar panels on warehouses in London and the rest of the UK.

Existing warehouse roof-space across the UK could host 15GWp of solar power, doubling the nation’s current total installed capacity without any loss of land. However, only 5% of warehouses currently have solar panels installed, according to the UK Warehousing Association.

The report argues that slow grid upgrades, regulation around sharing and selling energy generation, and the need to embrace smart management is holding back the rollout of solar across the logistics industry. A need to embrace complexity is hindering the development of the last mile logistics sector too. Last mile delivery can significantly cut the carbon footprint of deliveries across London, by bringing storage closer to the point of delivery, with different vehicles like electric vans, bikes, drones, autonomous robots and even walking supporting the final stage of delivery.

However, as last mile logistics can be so variable in nature and needs to be closely located with other uses, a flexible and positive approach is required from a planning/policy perspective. Both the public and private sector will need to think more creatively to incorporate local distribution hubs in strategic urban locations where this type of space is needed the most.

Barny Evans (pictured), Director, Sustainability, at Turley, said: “The logistics sector is the lifeblood of our economy. The industry recognises it is a significant source of GHG emissions and other environmental impacts; it is eager to accelerate its decarbonisation. There’s a responsibility on Government to unlock the barriers to this, and provide the policy needed.”

Sarah Bevan, Director, Planning & Development at BusinessLDN and co-founder of the Industry and Logistics Sounding Board, said: “Logistics is one of the fastest growing sectors for the economy and substantially impacts aspects of all businesses across the Capital and UK. Like all high carbon-emitting sectors, regulatory certainty and policy reforms are necessary to drive innovative solutions, such as HGV decarbonisation, and investment in renewable energy solutions like rooftop solar installations to reduce our carbon footprint. “That’s why it’s imperative that steps are taken now to decarbonise the sector and help us reach net zero before it is too late.”

Jules Pipe, Deputy Mayor of London for Planning, Regeneration and Skills, added: “Our net zero targets are ambitious and if we are to meet them the decarbonisation of energy intensive sectors like logistics is critical. Businesses operating in the sector have a key role to play but Government support will be equally important. This report calls on Government to speed up the decarbonisation of one of our most important sectors and proposes three key areas for action.”

Alan Holland, Managing Director for Greater London at SEGRO, added: “SEGRO and many of our customers are making huge strides towards the transition to net zero carbon, but success will also be measured on whether the whole sector can lower its carbon emissions not just a proportion of those operating within it. To be effective, much of this collective action and investment needs to be matched by having the right public infrastructure and a smart approach for how we plan the use of land. We welcome this report’s exploration of some of the key challenges, we encourage industry peers to embrace the innovation opportunities it identifies and we ask for policy makers to act on its recommendations.”

Government Action Needed to Decarbonise Logistics Sector

Posted on by David Priestman

The UK Government must ensure policy supports the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, according to a new report released today.

Installing rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the Capital, are two of the three recommendations made to Government today by planning and development consultancy, Turley, and the London Industry and Logistics Sounding Board (ILSB) as part of The Accelerating Logistics Towards Net Zero report. The report highlights the issues facing London’s logistics sector.

Logistics remains one of the largest emitting sectors in the UK. Transport alone produced 24% of the UK’s total emissions in 2020. While the Government has a programme to confirm the way forward for zero carbon HGV fuels by 2030, this new report argues this will be too late for the logistics sector. Instead, Turley and the ILSB are calling on Government to provide interim direction and policy support, to allow investment that supports the rollout of hydrogen or electric-powered HGVs for nationwide fossil-fuel free fleets.

Businesses like Amazon are already committing to a sustainable HGV future. The retail giant is investing £300m in the UK to decarbonise its fleet and replace with electric HGVs, electric vans, and eCargo bike fleets, as well as rolling out fast charging infrastructure. Other organisations are delaying due to the lack of clarity on the way forward. A second recommendation calls for further support to speed up the deployment of rooftop solar panels on warehouses in London and the rest of the UK.

Existing warehouse roof-space across the UK could host 15GWp of solar power, doubling the nation’s current total installed capacity without any loss of land. However, only 5% of warehouses currently have solar panels installed, according to the UK Warehousing Association.

The report argues that slow grid upgrades, regulation around sharing and selling energy generation, and the need to embrace smart management is holding back the rollout of solar across the logistics industry. A need to embrace complexity is hindering the development of the last mile logistics sector too. Last mile delivery can significantly cut the carbon footprint of deliveries across London, by bringing storage closer to the point of delivery, with different vehicles like electric vans, bikes, drones, autonomous robots and even walking supporting the final stage of delivery.

However, as last mile logistics can be so variable in nature and needs to be closely located with other uses, a flexible and positive approach is required from a planning/policy perspective. Both the public and private sector will need to think more creatively to incorporate local distribution hubs in strategic urban locations where this type of space is needed the most.

Barny Evans (pictured), Director, Sustainability, at Turley, said: “The logistics sector is the lifeblood of our economy. The industry recognises it is a significant source of GHG emissions and other environmental impacts; it is eager to accelerate its decarbonisation. There’s a responsibility on Government to unlock the barriers to this, and provide the policy needed.”

Sarah Bevan, Director, Planning & Development at BusinessLDN and co-founder of the Industry and Logistics Sounding Board, said: “Logistics is one of the fastest growing sectors for the economy and substantially impacts aspects of all businesses across the Capital and UK. Like all high carbon-emitting sectors, regulatory certainty and policy reforms are necessary to drive innovative solutions, such as HGV decarbonisation, and investment in renewable energy solutions like rooftop solar installations to reduce our carbon footprint. “That’s why it’s imperative that steps are taken now to decarbonise the sector and help us reach net zero before it is too late.”

Jules Pipe, Deputy Mayor of London for Planning, Regeneration and Skills, added: “Our net zero targets are ambitious and if we are to meet them the decarbonisation of energy intensive sectors like logistics is critical. Businesses operating in the sector have a key role to play but Government support will be equally important. This report calls on Government to speed up the decarbonisation of one of our most important sectors and proposes three key areas for action.”

Alan Holland, Managing Director for Greater London at SEGRO, added: “SEGRO and many of our customers are making huge strides towards the transition to net zero carbon, but success will also be measured on whether the whole sector can lower its carbon emissions not just a proportion of those operating within it. To be effective, much of this collective action and investment needs to be matched by having the right public infrastructure and a smart approach for how we plan the use of land. We welcome this report’s exploration of some of the key challenges, we encourage industry peers to embrace the innovation opportunities it identifies and we ask for policy makers to act on its recommendations.”

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