In response to a growth in demand, Asian logistics provider Kerry Logistics has started work on the expansion of its Chongqing Logistics Centre in China with a focus that includes automotive spare parts.
Phase 2 construction, which is scheduled for completion in the first quarter of 2013, will comprise 62,700m2 of space for warehousing and value-added services, including a dedicated zone in the facility for automotive spare parts. The extension will build on its provision of integrated logistics services such as kitting, domestic and regional delivery, vendor-managed inventory, pick-and-pack, labelling, packing and re-packing.
“Chongqing is one of the fastest growing cities in Western China and we have seen a rapid increase in demand for warehousing and logistics services. We have completed the first phase of the logistics centre, with an area of 20,500m2, in the first quarter of this year,” said Edwardo Erni, Kerry’s managing director, Mainland China.
The total area of the logistics centre will be 83,200m2 when the second phase is completed. It will also serve the electronics, hi-tech and telecommunications sectors.
According to a spokesperson for Kerry, as part of the expansion the company will be installing a new racking system, conveyor belt and RFID to better facilitate in- and outbound logistics flow.
The spokesperson estimated that the expansion would allow Kerry to handle 5-10 times more volume than its current quantity. The expansion will also allow for more services to be added, including milk runs, JIT delivery, quality checks, battery recharging and knockdown kit operations.
DHL renews contract with Perkins
DHL Supply Chain has renewed its contract with Perkins Engines Company for a further two years for the provision of collection services from the commercial engine maker’s parts suppliers and delivery to its UK factories.
“Perkins and DHL have now agreed a set of common goals to deliver even greater efficiencies and higher safety levels in the future,” said Bob Naylor, vice president for UK Freight, DHL Supply Chain. “Partnering with Perkins in this manner has enabled us to develop our long term relationship and we’re delighted that this is set to continue.”

Perkins sources parts from over 140 UK suppliers to produce a wide range of engines for heavy construction, agricultural, marine and material handling products. To support this, DHL will make around 500 collections per week from the supplier body and deliver to Perkins’ factories in Peterborough and Stafford.

As part of the renewal DHL will also continue to operate a trunking service for finished engines from the Peterborough factory to a local external storage warehouse.

Temsa in Turkish import talks with Dongfeng
Turkish truck and carmaker, Temsa Global, has been in talks with Dongfeng Motor regarding plans to import the Chinese vehicle maker’s medium- and heavy-duty trucks to Turkey, with plans to add passenger vehicles at a later stage.
Temsa’s president Tamer Ünlü led a delegation to Dongfeng's international business department at the end of July to discuss the import opportunities.
Temsa Global manufactures and exports its products in the coach and midi-coach segments under its Temsa brand. It also represents Mitsubishi and Komatsu as their distributor in Turkey.
In June this year Dongfeng’s joint venture with PSA Peugeot-Citroën shipped its first exports from China with the movement of Peugeot 408 models to Egypt. The move follows an agreement signed in September 2010 between the two companies establishing rights for PSA to use China produced vehicles for export to overseas markets. It makes PSA the third global brand to export vehicles from China, following GM and Honda.
Ceva extends inbound contract with Michelin
Ceva Logistics has renewed its seven-year partnership with Michelin Thailand for a further three years and will continue to handle the inbound movement of tyres from Michelin’s production plants into warehouse facilities in three main locations across the country: Laemchabang, Nongkea and Nongree.
Ceva manages third-party sub-contractors and transport providers, as well as transport planning and delivery control activities.
The logistics provider will also implement network engineering, full KPI reporting and POD management to ensure that Michelin’s targets are met.
Ceva will also manage the reverse logistics for Michelin.
Ceva also provides Michelin with services for cross-border transport to and from Malaysia and focuses on continuous value creation in transport, reducing cost and CO2 emissions through load consolidation and effective route planning.
Baltimore climbs port rankings
The US port of Baltimore has moved into the number one spot for truck handling in 2010 according to new figures released this week and has retained its position as the number one port in the US for handling ro-ro cargo, including farm and construction equipment. It has also moved up from third to second for passenger vehicles.
The port, which handles 85% of Ford Transit Connect imports to the US from the Kocaeli plant in Turkey and added significant BMW traffic through to Midwestern customers last year, handled more than 397,000 vehicles in 2010, up 44% on 2009 figures.
The automotive increases have contributed to the overall dollar value and tonnage of cargo handled through the port rising to $41.5 billion in 2010, ranking it nationally 11th in the total dollar value of cargo handled according to US Census data.
UP picks up award from Chrysler
The Chrysler Group has recognised Union Pacific for outstanding support in the fields of logistics and transportation at its 2011 Annual Supplier Meeting and Awards Ceremony in Detroit.
"Collaboration with our supply base has been a critical component in our ability to bring 16 new or significantly refreshed vehicles to the marketplace in the past year. Without the strong support of our supplier partners, we would not have been able to accomplish such a feat in such a short amount of time," said Dan Knott, Chrysler Group senior vice president of purchasing and supplier quality.

Chrysler recognised suppliers who fared well on its ‘External Balanced Scorecard’, a rating system that evaluates supplier performance in areas such as quality, delivery, cost, warranty and partnership in addition to input from senior leadership.  

It is an honour to be recognised by Chrysler for our commitment to service," said Linda Brandl, Union Pacific vice president and general manager-Automotive. "Our dedicated team effort and our focus on delivering value made this award possible. We aim to continue exceeding expectations in logistics and transportation with Chrysler."
The awards dinner was held and initially announced at the end of June.