Latest news from Heavy Lift & Project Forwarding International Magazine

Making the most of the downturn

November 16 - GAC Group president Bengt Ekstrand noted during a recent managers' conference that the company is pushing for greater innovation and flexibility in order to cope with turbulent global markets, and has maintained a solid balance sheet despite

"Disruptive forces are reshaping our markets almost on a weekly basis but in the process, new opportunities for growth are coming into view," said Ekstrand.

"Companies that are willing to rethink their business models, put their customers first, and take advantage of new technologies will find ways to prosper in these turbulent times."

Ekstrand noted that the challenge is to "evolve in a smart way" while not discarding traditional values.

He added that GAC has continued to invest in capital assets such as vessels and warehouses in key locations around the world despite the difficult conditions. In 2016, total investment commitments reached over USD65 million.

"We need to keep our focus on the long term," he stated. "It's important not to get swept away by the disruptive forces in our markets and start making wholesale changes just for short-term effects."

GAC has begun construction of a new distribution centre in Dubai, with similar developments under way in Indonesia and Thailand. The company has also formed a joint venture for the operation of a terminal in Cyprus and has ordered five new ships for its marine fleet.

Ekstrand explained that the biggest challenge was to ensure the skills, values and attitudes of GAC management and staff remained strong and responsive to changing market conditions.

It is no secret that the market is currently experiencing its most prolonged downturn since the start of the financial crisis, with the shipping sector suffering from rock-bottom freight rates and market overcapacity, while the project forwarding community struggles in the face of low commodity prices and project delays. But there are still opportunities to be taken during this slowdown.

Ekstrand's comments resonates with a speech Mammoet ceo Jan Kleijn made last year, encouraging heavy lifting and specialised transport providers to embrace disruptive technologies in the wake of slowing economic growth.

Of course business for many in this sector has suffered at the hands of a number of negative factors and it looks like there will be no quick or easy recovery from this crash, but the ability of project logistics providers, shipping companies and heavy transport specialists to adapt in this environment will be paramount to survival.

As Kleijn asked last year, "are we driving change or does change happen to us?" 

 

Bengt Ekstrand.

 

www.gac.com

www.mammoet.com

Heavy Lift | News

GE responds to fraud allegations thumbnail image

GE responds to fraud allegations

August 19 - General Electic (GE) has issued a statement in response to allegations that the company is engaging in accounting fraud worth USD38 billion.
Views: 83
DSV completes Panalpina acquisition thumbnail image

DSV completes Panalpina acquisition

August 19 - DSV has completed the acquisition of Swiss freight forwarder Panalpina, creating one of the world’s largest transport and logistics companies.
Views: 123
FROM THE MAGAZINE: Pumping up power thumbnail image

FROM THE MAGAZINE: Pumping up power

August 19 - As nations reduce their reliance on fossil-fuelled power generation, hydropower projects – in particular pumped storage schemes – will play a key role in supplementing wind and solar energy developments.
Views: 246
Jan De Nul secures Kriegers Flak work thumbnail image

Jan De Nul secures Kriegers Flak work

August 16 - Jan De Nul Group will transport and install 72 Siemens wind turbine generators – with a capacity of 8.4 MW each – for the Kriegers Flak offshore wind farm in Denmark.
Views: 599

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.