|
TUI AG acquiring CP Ships
Hanover, Germany—TUI AG, which owns shipping company Hapag-Lloyd, is buying CP Ships Ltd., a leading container shipping company with interests in Canada.
The deal—valued at US$2 billion— will vault TUI into the top five global container shippers, making it a major player in the North Atlantic, as well as the Far East, Australasia and South America, according to the company.
“The combination of Hapag-Lloyd and CP Ships will create a company with the strength and scale to compete effectively in an industry where consolidation is changing the landscape,” said Michael Behrendt, CEO of Hapag-Lloyd.
The combined company will have a capacity of 139 ships, with an additional 17 on order.
CP Ships also owns the Montreal Gateway terminals, one of the largest marine container terminal facilities in Canada.
Blockades cause trucking woes
Moncton—Independent truckers set up highway blockades in New Brunswick recently to protest high fuel prices.
Roadways, including the Trans-Canada Highway, were blocked in and out of the province, and the border crossing at Woodstock-Houlton, Maine was also affected. The protest ended after the Atlantic Provinces Trucking Association (APTA), which represents other truckers, obtained a legal injunction.
“This issue is affecting us all,” said APTA president Ralph Boyd, in a press release. “But people have to realize that solutions to these problems cannot be reached by blocking the highway.”
The protest also raised the ire of shippers, including the Canadian Council of Grocery Distributors (CCGD), which called on the provincial governments to enforce laws allowing free movement of necessary goods, such as fresh fruit and vegetables.
The protests—including those in Vancouver earlier this year—are creating a riff between members of the Canadian Trucking Alliance (CTA), provincial trucking associations, and independent carriers.
David Bradley, CEO of the CTA, said the government created a dangerous precedent when it guaranteed higher rates to some of the truckers who blocked the Port of Vancouver earlier in the year. He said the move may encourage more blockades.
Border delays affecting trade
Ottawa—A new report from the Coalition for Secure and Trade-Efficient Borders reveals what many shippers already know—border requirements are reducing North American competitiveness.
The report, titled "Rethinking our Borders: A New North American Partnership," is the fourth of its kind from the 55-member organization.
Though it pointed to positive developments, such as the successful creation of integrated border enforcement teams, it found plenty of “troubling” trends:
• North American businesses face billions of dollars in compliance and delay costs at the border;
• Estimated processing times for shipments entering the US have increased 300 per cent, from 45 seconds to more then two minutes, 45 seconds per truck at the end of 2004;
• Customs rules are more complex than ever and are being enforced differently by different inspectors at different crossings;
• There are now at least 44 agencies between our two countries with some level of jurisdiction over the shared border;
• At several key crossings there is limited or no access to dedicated lanes for commercial vehicles in the FAST program;
• Business trevelers still face increasing delays and complications at the border.
The report can be found at Canadian Manufacturers and Exporters web site: http://www.cme-mec.ca.
Rogers teams with Bell
Toronto—Rogers Communications and Bell Canada are teaming up to jointly build and manage a national wireless broadband network, expected to reach more than two-thirds of Canada in less than three years.
The companies will pool their resources into a joint venture called Inukshuk Internet Inc., which will build and operate the network. Bell and Rogers will each have the right to use 50 per cent of the network’s total transmission capacity, and the two companies will still compete in the marketing and delivery of applications and services used on the network.
RFID explained at new test centre
Markham, Ont.—A new radio frequency identification (RFID) showcase opened at IBM’s facility in Markham, Ont. in September.
With an initial investment of $1.7 million, the centre will allow Canadian manufacturers, producers, distributors and retailers to test and experiment with RFID. Right now the centre is focusing on the consumer packaged goods, perishables and retail industries, but additional products may be added the future, according to IBM.
The permanent centre was formed by government agencies, retail trade associations and private companies such as Symbol Technologies, Intermec Technologies Corp. and IBM.
“A key driver for RFID adoption is the development of standards, which will eliminate proprietary systems, helping to reduce supply chain costs and increase competition across multiple industries,” said Art Smith, president and CEO of EPCglobal Canada, the non-profit industry association promoting barcoding and RFID enablers.
The demonstration centre will show manufacturers and retailers alike how RFID works, and how it wirelessly tracks products from the supplier to the customer.
RFID involves placing small radio antennas to pallets and boxes to have full visibility of an order as it moves through the supply chain.
Striving for better outsourcing
Toronto—A new Canadian research centre has been formed to help companies develop successful outsourcing strategies.
The Centre for Outsourcing Research and Education (CORE) is comprised of both private and public organizations, academics and consultants. Its members include IBM, PricewaterhouseCoopers, Cisco Systems, Hydro One, Progistix-Solutions and the Rotman School of Management.
“CORE’s vision is to become the definitive source of education and information about oursourcing,” said John Simke of Pricewaterhouse Coopers, and president of CORE. “Through CORE we are offering executive education, research, benchmarking, conferences and a resource directory.”
Members of the new centre gathered in Toronto recently for a panel discussion on the major issues. Through the year, CORE will be gathering outsourcing case studies. See http://www.core-outsourcing.org
Manufacturing shipments down in July
Ottawa—Manufacturing shipments were down 1.4 per cent in July, while new orders weakened by 0.4 per cent, according to Statistics Canada.
On a more positive note, manufacturers added to the backlog of unfilled orders by 2.4 per cent, as a result of rising orders for aircraft and railroad rolling stock, the agency reported.
It cited challenges for manufacturers this year that are “largely beyond their control,” such as the heightened Canadian dollar, increased foreign competition and the soaring costs of inputs.
Manufacturers continued to shed jobs throughout the summer. A decline of 26,000 in July was followed by a cut of 8,500 in August. The number of factory jobs has fallen by 4.7 per cent or 108,000 since August of 2004, according to Statistics Canada.
Though July is typically the month when many manufacturing operations shut down for vacations and line changes, the cuts were still larger than those in previous years, the agency reported.
Oracle buying G-Log
Redwood Shores, Calif.—Oracle has announced plans to buy G-Log, a global provider of transportation and logistics software.
Oracle will integrate G-Log’s logistics systems with its own array of enterprise resource planning (ERP) and supply chain software. The package will help customers manage higher fuel costs, and other supply chain challenges, according to Oracle.
G-Log’s customer base includes DuPont, Kuehne & Nagel and Volvo.
New awards boost rail safety
Ottawa—The Railway Association of Canada (RAC) has launched two new awards to recognize rail safety and protection of the environment. The Environment Award and the Safety Award, which will be presented annually, should motivate the industry to adopt better working and operating practices, while increasing the public’s awareness of these policies, according to the RAC.
Both small and large railways are eligible for the awards, and judging will be based on originality, cost-effectiveness and exportability to other operators.
Railway members can submit applications based on programs in place by their company, employees, customers, suppliers or stakeholders. The 2005 awards will be presented in Ottawa in December.
|
