CMA CGM Group to acquire 35% stake in Dry Port

Following French President Emmanuel Macron’s state visit to Egypt, and in the presence of H.E. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, the CMA CGM Group, a global player in maritime, land, air, and logistics solutions, officially signed a strategic partnership agreement with October Dry Port (ODP), marking a significant milestone in advancing Egypt’s logistics infrastructure and supply chain capabilities.

Through a shareholding participation of 35% and a management agreement, the CMA CGM Group will become an active operational partner in the activities and development of the logistics and rail platform  of October Dry Port. The Group will bring its expertise in managing inland terminals while providing reliable and cost-efficient services to all customers. The completion of the acquisition is subject to customary closing conditions and regulatory approvals.

The agreement was signed by Christine Cabau Woehrel, Executive Vice-President Assets and Operations of the CMA CGM Group, and Eng. Ahmed Elsewedy, President & CEO of Elsewedy Electric, during a ceremony attended by His Excellency Egypt’s Minister of Transport, Kamel El-Wazir as well as senior officials from both entities. This collaboration establishes a direct partnership between CMA CGM and ODP to enhance port operations, optimize cargo movement, and provide seamless logistics services to customers in Egypt’s expanding industrial zones.

October Dry Port, Egypt’s first dry port and the first public-private partnership (PPP) project in the Egyptian transport sector under the EBRD Green Cities program, was developed, built, and operated by Elsewedy Electric in partnership with the General Authority for Land and Dry Ports (GALDP). The project was funded by the European Bank for Reconstruction and Development (EBRD) and officially commenced operations in November 2023. Recognized for its commitment to sustainability, the dry port was awarded the “Best Sustainable Infrastructure Project” for its environmentally conscious design, energy-efficient operations, and alignment with Egypt’s green transformation strategy.

Strategically located in the heart of the New Industrial Area in 6th of October City, ODP is directly connected to all of Egypt’s seaports and serves as a critical logistics hub, facilitating faster cargo clearance, reducing seaport congestion, and supporting Egypt’s growing industrial and export ecosystem.

Through this partnership, CMA CGM will leverage ODP’s state-of-the-art facilities to serve its expanding customer base across Greater Cairo and Upper Egypt, providing integrated inland transport, customs clearance, and advanced logistics services. Already operating the Tahya Misr container terminal at the Port of Alexandria and the new terminal of Sokhna which will open early next year, the CMA CGM Group further strengthens its strategic positioning in Egypt, the Mediterranean and the Red Sea, especially through innovative and sustainable intermodal solutions. The CMA CGM Group will offer regular round trip rail services between the major seaports of Alexandria and Ain Sokhna to the Great Cairo area, boosting the competitivity of intermodal solution for Egyptian customers.

During the signing ceremony, H.E. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Transport affirmed that Egypt is open to cooperation with all international companies, including CMA CGM, which has a distinguished strategic partnership with the Egyptian side through its management and operation of the “Tahya Misr” multipurpose terminal at Alexandria Port. This terminal was inaugurated by H.E. President Abdel Fattah El-Sisi in June 2023 and currently plays a vital role in maritime transport, global trade, and transit trade. The Minister also noted the cooperation in one of the terminals at Sokhna Port through CMA CGM’s partnership with a global alliance, inviting CMA CGM to inject further investments into Egypt, especially given the country’s promising investment climate.

Christine Cabau Woehrel stated: “The CMA CGM Group values a lot this new partnership with Elsewedy on the October Dry Port logistics platform. This is a unique opportunity to foster the development of low-emission intermodal solutions in Egypt through efficient rail connections. This new investment confirms the Group’s long-term commitment to Egyptian supply chain growth. It combines beautifully our worldwide maritime network to and from Egypt, our investment in the terminals of Alexandria and Sokhna, with the capacity to offer door to door efficient and competitive solutions to our Egyptian customers, opening a new more sophisticated vision of Egyptian supply chain development.”

Ahmed Elsewedy added: “Welcoming CMA CGM as a partner is a major step forward in positioning ODP as a national and regional logistics hub. Our shared vision for sustainability and efficiency makes this collaboration even more impactful.”

This agreement reinforces Egypt’s position as a regional logistics gateway and supports the country’s broader goals of promoting industrial growth, sustainable development, and global trade connectivity.

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Bolloré Logistics Sold to CMA CGM

The Bolloré Group and the CMA CGM Group announce the completion today of the sale of 100 % of Bolloré Logistics to CMA CGM, it being specified that the transfer of Bolloré Logistics Sweden AB to the CMA CGM Group remains subject to the latter obtaining foreign investment clearance in Sweden.

The purchase price is €4.85 billion euros, on the basis of the estimated debt and cash on the completion date.

As a leading transport and logistics company in France, and one of the main players in the sector worldwide, Bolloré Logistics achieved in 2022 a turnover of 7.1 billion euros, transported 710,000 TEUs of ocean freight and 390,000 tons of air freight, along with a storage capacity of 900,000 m2.

This is CMA CGM’s largest acquisition since its creation in 1978 and constitutes a major step in the CMA CGM Group’s logistics development strategy, complementing its historical maritime transport line of business.

Takeover Deal

Rodolphe Saadé, CEO and Chairman of the CMA CGM Group, declared: “I would like to thank the Bolloré Group for the trustful dialogue we have established over the last few months to successfully finalize this acquisition. Within the CMA CGM Group, we are proud to welcome a French flagship built on years of work and experience. The new entity, made up of CEVA and Bolloré Logistics, is the world’s number 5 in its sector. We will now be able to offer our customers a complete range of services and extend our expertise to new businesses. On behalf of the CMA CGM Group and my family, I would like to welcome the 14,000 employees who are joining us today. Together, we will combine our talents and accelerate our development.”

Mr. Cyrille Bolloré, CEO and Chairman of the Bolloré Group, added: “This is the beginning of a new chapter for Bolloré Logistics’ employees. I am very pleased that they are joining the CMA CGM Group and the Saadé family. They will bring unique expertise and know-how, which have long made the pride of the Group and which will be the pride of CMA CGM tomorrow. It is also a great opportunity for our customers around the world and I would like to take this opportunity to thank them for their trust and loyalty”.

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Sexify Logistics

Red Bull’s Formula One HQ in Milton Keynes is an appropriate and impressive backdrop to learn why data is fuel in logistics. David Priestman attended Dexory’s Supply Chain Fast Track conference.

High performance in logistics can be maintained by extracting insights from data and taking practical steps. “Data itself has no value,” states Rob Smedley, former Ferrari, Jordan and Williams F1 race engineer, “insight is everything. Complexity requires having a data strategy.” Warehouses may be less glamorous than race tracks, but they are also hubs of innovation.

Polycrisis logistics

When multiple supply chain disruptive events happen concurrently how can they be tackled? “Resilience planning is key,” says Mike Fahy, CEO of Neovia, a contract logistics provider operating in 20 countries and with 80 hub facilities and 8000 employees. The 3PL specialises in service parts logistics for automotive, industrial and tech customers, formerly being Caterpillar Logistics Services.

Fahy advises logisticians to tackle ‘polycrises’ by multi-sourcing, embracing technology and strong cybersecurity. “We’re not back to just-in-time yet, after the pandemic. We’re still at just-in-case for supply. Warehouse space is relaxing a bit, depending on the location.” Neovia use Dexory to create a ‘digital twin’ of each warehouse, providing visualization and interpretation of inventory stock. For example, the Dexory View dashboard enables pick face analysis of volumes.

Neovia use other tech, like Protex AI’s warehouse CCTV system, which reduced safety incidents by 80%. “New tech creates disruption,” Fahy emphasises, “being part of change is key.” He also praised Athingz – an autonomous supply chain service utilising machine learning to aid sales inventory optimisation, planning and execution. Real-time analytics with a virtual control tower helps forecasting freight lanes, both inbound and outbound. Extended reality, or VR, is used by Neovia for training, using tech from Elm Park Labs. Apple’s Vision Pro is tipped by Fahy to become a handy tool.

Supply chain design, of the number and location of distribution centres, leads to a tech-based materials handling approach. Simulation can be used prior to construction to study the average flow, slow days and peak operations. “Maximising cubic optimisation is key,” according to Fahy, and robotics is paramount. His company are piloting self-driven HGV lorries, remote driving of warehouse reach trucks and remote monitoring of assets.

Visibility gap

Only 6% of supply chain managers claim to have full global visibility. Gaps can lead to out-of-stock or over-stocking issues. The distribution centre is where some visibility is lost, due to damage, loss, theft or errors that occur. The visibility gap is an intelligence gap. An estimated 6500 hours per year can be spent on stock checks for a typical DC, say Dexory. Starting accuracy for their customers is 91-95%, with 24 minutes on average taken to resolve discrepancies. Dexory’s solution claims to increase accuracy to over 99%, which is better than warehouse drones can achieve.
GE Appliances are one of many manufacturers using temporary, overflow warehouses. “That can make it harder to maintain accuracy,” Harry Chase, GE Senior Director for Central Materials, says. “The quality and timeliness of data is crucial.” Dexory can be used for better slotting and stock consolidation, by freeing-up space and identifying bottlenecks.

Machine help?

Generative AI may create new strategies in logistics, for example in transport routing. Chris Coote of Dexory says AI is less intuitive than a human but provides fast answers and concepts. “Embrace limitless possibilities to build a smarter, safer ecosystem in the DC,” he exhorts.

Wincanton, a 99 year-old British third party logistics operator with 21000 staff, are in the process of being acquired by CEVA Logistics, part of the giant French shipping line CMA CGM. Paul Durkin, Chief Customer and Innovation Officer, has a practical view of robotics and automation. Companies should invest in tech, he argues, because labour costs are rising, automation costs are falling and there is a demand for short lead times in logistics. “There’s no longer a long payback time for this equipment,” he says, looking for a 20% return of capital deployed.

The downsides to such investment are the interest on capital expenditure, competing demands for investment and the proliferation of software and hardware, which makes it difficult to be certain what to purchase. “Retail customers spend on their ‘front of house’ (shops and stores). We’re ‘back of house’,” adds Durkin. Wincanton has re-organised itself to lean towards IT and technology, seeing 3PL as a service. Owning the IP of software in-house is important for the company. “We can’t rely on being an asset-based business, with just trucks and sheds,” he adds. Automation can solve customer problems. “Commercialize it. Value creation leads to long-term success.”

Industrial collaboration is a good thing, according to Durkin, who was speaking on the day the CEVA deal was being finalised. “There’s room for it. Warehouses haven’t evolved that much. We all need to accelerate our journey and get slicker. Wincanton need 30 upgrade projects a year, but only have the bandwidth for half that.“

Generation logistics

Getting the organization’s design right is key. “Size isn’t everything. Start small with automation and robotics, get used to it, be prepared to fail,” he advises. Wincanton work with smaller, nimble suppliers, including Dexory. “Now we have proof-of-concept on-site we can invest further. There are no guarantees, but we have created headroom.”

Automation and robotics can inspire colleagues and attract young people into the sector. It can lead to upskilling of existing staff. ‘Generation logistics’ is a slogan aimed to elevate the industry, make it sexier. New entrants to the market, like Hived and everstox, backed with venture capital by investors including Maersk, are on a fast track, fuelled by data to innovate and increase competition in logistics. Our industry is en vogue. Make hay and rejoice.

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Packing Software for Spare Parts

Nulogy’s relationship with CEVA Logistics is continuing to forge ahead after its flexible cloud-based software was chosen as the new platform for the co-packing of automotive spare parts at its Melbourne facility in Australia.

Nulogy’s industry-leading contract packing software is replacing the existing solution in order to meet the growing requirements for the handling of automotive parts. By digitalising operations at the site, Nulogy will drive enhanced visibility and real-time production monitoring, as well as improve materials and inventory management for the business and its customers.

Nulogy has successfully supported the implementation of its solution at several CEVA co-pack sites around the globe, including in the Netherlands, Poland, France, Turkey, and the United Kingdom. This new implementation in Australia expands the use of Nulogy from FMCG sector clients to the automotive sector.

Bart Beeks, Global Contract Logistics Leader at CEVA Logistics, said: “At CEVA Logistics, our focus is on providing our customers with a complete, agile, and efficient warehousing solution. This includes providing state-of-the-art contract packing services and our strengthened partnership with Nulogy will allow us to further digitalise our operations worldwide, especially in growth markets.”
Josephine Coombe, Managing Director, Europe, Nulogy, said: “As trusted partners in providing digitalisation across CEVA Logistics’ global co-packing network, we’re delighted to see the adoption of Nulogy in Australia.

“Innovators like CEVA Logistics recognise the powerful benefits that digitalisation brings to their co-packing businesses, enabling faster, higher quality and responsive service to customer needs whatever the products. As automotive customers demand collaborative and responsive partners across their supply chains, our customers enjoy significant competitive advantage in the market because of the customer service, quality and traceability benefits Nulogy delivers.”

Nulogy, a leading supplier of digital supply chain solutions, enables consumer brands and their supplier communities to collaborate on a multi-enterprise platform to deliver with excellence to an ever-changing consumer market. The Nulogy Multi-Enterprise Supply Chain Business Network Platform optimises contract manufacturing and co-packing operations, while empowering consumer brands and their external suppliers to accelerate network responsiveness and collaborate at the speed of today’s market.

 

CEVA Logistics wins Contract with Pernod Ricard in Thailand

CEVA Logistics has won a major, five year contract with Pernod Ricard to provide the drinks manufacturer with warehousing and distribution support in South East Asia. Pernod Ricard is one of the world’s leading alcoholic beverages producers and within this new contract, CEVA Logistics’ extensive scope of work in Thailand will include Customs Brokerage and import haulage, a combination of standard duty paid and bonded warehouse management and domestic transportation alongside a range of value-added services including tax stamping, warning label, gift box and repacking. The operation will manage an annual throughput of 19 million bottles of liquor and spirit across 26 different brands of liquor, champagne and wines.

Pernod Ricard has been operating in Thailand for over 20 years. In January 2020, Pernod Ricard Thailand issued a competitive tender with the objective of uplifting the storage quality and service standard, in which CEVA Logistics was the successful bidder. This win further extends CEVA Logistics’ existing contract with the company in the Philippines and paves the way for future collaboration in other SEAPAC countries.

CEVA Logistics’s winning offer is based on the conversion of an existing CEVA Logistics multi-user site at Bangna-Bangkok, into a 7,600 m2 facility completely dedicated to Pernod Ricard. This high quality, Good manufacturing practices (GMP) compliant site featuring air conditioning will gather both a duty paid, and a bonded warehouse “under one roof”. Pernod Ricard trusted CEVA Logistics to deliver a seamless solution as a leading logistics provider part of the CMA CGM Group, and because of its existing collaboration with the company for Custom Brokerage and last mile delivery.

The go live was seamless, largely credited to a strong team and disciplined execution of CEVA Logistics’ well-respected zero defect start-up (ZDS) methodology. ZDS is a process that relies both on best practices and accurate planning for error-free contract start-up, with clear pre-agreed targets between the customer and CEVA Logistics.

Elaine Low, CEVA Logistics’ Regional Managing Director South East Asia & Pacific Region,says : “We are delighted to be working with Pernod Ricard and providing them with our warehousing, distribution and delivery services across Thailand as they expand their global business. Our experienced team has created a robust solution which is both compliant and scalable and will ensure reliable, value-added services and delivery across their range of famous brands”.

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