Norbert Dentressangle CEO makes 2013 predictions
Following the release of 2012’s end-of-year financial results, Hervé Montjotin, CEO at Norbert Dentressangle (ND), claims the company has a similar year to come, claiming the economic environment within the European logistics provider will “be comparable to 2012”.
In a video released on the company’s website, Montjotin claims that he expects ND has “a real capacity to grow whatever the economic context is”, outlining potential growth in the company’s geographical coverage, and in the further integration of the company’s current branches.
“If we focus on organic growth I’m absolutely sure that in 2013 we will take the benefit of the position we have reinforced in 2012... In freight forwarding it’s highly related to our capacity to connect well all our branches in order to take the full benefits of the network business in order to address innovative offers to our customers. In a nutshell, I would say in our hands we have a real capacity to grow whatever the economic context is,” he explained.
According to a statement releasing their end-of-year results, Norbert Dentressangle (ND) increased their before tax earnings (EBITA) by 9.1 percent to €142.3 million, in addition to maintaining a stable operating income margin of 3.7 percent of turnover.
The Group strengthened its international profile by acquiring John Keells Group’s freight forwarding activities in India/Sri Lanka, as well as Nova Natie’s logistics/freight forwarding activities in Antwerp, in addition to managed a significant financial debt reduction of 22 percent, with a leverage ratio of less than 2x at the close of the financial year.
Montjotin also confirmed that ND is looking towards more acquisitions in the future, in line with the company’s “history, culture and skills”.
“Beyond the organic growth there are all the things related to acquisitions which are related to the ND history, culture and skills. For sure, having such a strong balance sheet, having this level of net debt at the end of 2012 will enable us to be very proactive in acquisitions if it makes sense strategy wise for one of our main businesses. So 2013 will be for sure a year where ND will progress in terms of acquisition in Europe and maybe outside Europe,” said Montjotin.
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