Norbert Dentressangle acquires Fiege's logistics assets
Norbert Dentressangle (ND) announced the acquisition of logistics service provider Fiege’s Italian and Iberian operations this week in an all-cash financed deal.
The company significantly increased the size of its logistics business and further strengthened its market position in the European logistics market through the acquisitions, which ND hopes will encourage development where the macro-economical context creates opportunities.
ND claims the new assets will significantly increase the size of its logistics business with ‘profitable and sound operations, broadened skills, expertise and customer portfolio, including FMCG, retail and healthcare & pharmaceuticals’, according to a statement released by the company.
Hervé Montjotin, CEO of Norbert Dentressangle, commented: “This tactical operation will considerably strengthen the Southern region of the European footprint of our Logistics business, since Italy and Iberia are crucial geographical components of Norbert Dentressangle’s pan-European network.
“Our decision to continue to invest in the region reflects clients’ increased need for seamless and robust transport and logistics solutions and we are delighted that Norbert Dentressangle will be able to provide them with even greater efficiency while safeguarding its high quality standards. The leading market positions we are gaining and consolidating in these markets will enable us to rapidly increase critical mass in Southern Europe and to access larger business opportunities in a more systematic and successful way.”
ND will become the 4th largest player on the Italian logistics market, doubling Norbert Dentressangle’s current footprint in Italy through the acquisition of Fiege Borruso and FLI spa (Pharma) Italian operations, in a deal which is ‘complementary in terms of network, skills, expertise and customer portfolio’.
With a workforce of 510 people, these Italian operations generated 2012 revenues of ca. €95M and ran at profit thanks to 11 sites representing 264,000 m² of warehousing area. According to the agreement, Fiege will retain some logistics and air freight contracts operated in Italy and part of its European approach with its German customers.
Norbert Dentressangle’s Italian logistics operations will account for a total turnover of €220M, operating 35 sites, offering 630,000 m² of warehousing area and employing 1,200 people.
Through the operation, Norbert Dentressangle will also acquire Fiege Iberia and Fiege Iberia Operador Spanish and Portuguese operations, bringing complementary network, customer portfolio, together with highly skilled expertise.
With a workforce of 342 people, these Iberian operations recorded 2012 revenues of ca. €34M thanks to 5 multi-customer platforms (69,000 m²), 4 specialist dedicated warehouses (67,000 m²), 20 cross-docking platforms (73,500 m²), providing customers with contract logistics services for the transport of ambient, temperature controlled and chilled goods, services for dangerous goods.
The operation will enable Norbert Dentressangle to strengthen its position among market leaders and significantly increase the size of its logistics business with broadened skills, expertise
and customer portfolio.
Further to the transaction, the new Norbert Dentressangle’s Iberian operations will generate combined turnover of €450M, offering 458,000 m² of ambient warehousing areas, a
fleet of 1.800 vehicles and employing 1,700 people.
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany