ECG – The Association of European Vehicle Logistics
CONTENTS
NEWS FROM BRUSSELS
ECG publishes a new version of ‘Finished Vehicle
Logistics by Rail in Europe’ book
AUTOMOTIVE INDUSTRY
Kia signs deal to bring new port operation to
Stallingborough
Carmakers localise engine production in Russia
EUROPE
Issue 15.36, 7th –11th September 2015
REST OF THE WORLD
2
2
2
2
3
4
Renault begins export through Valencia port
4
Channel Tunnel ‘massively underused for rail freight’ 4
Truck fuel-economy standards needed, says German
Environment Agency
5
5
Daimler and Renault-Nissan break ground for new jointventure plant in Mexico
5
Renault aims to take lead from PSA in post-sanction
Iran
7
India announces second 10-year Automotive Mission
Plan
8
NYK signs deal to develop Ro-Ro in Saudi; JLR pulls
plans on plant there
9
PRESS RELEASES
9
ABP celebrates the start of 2015 London International
Shipping Week
9
Ro-Ro traffic: HAROPA accommodates the « new
generation » vessel of Höegh Autoliners
10
ECG & other industry
events
►ECG Eastern Regional
Meeting, on 17h September,
Istanbul, Turkey
► Shortsea Europe Conference,
23-24th
September,
Bremen,
Germany
ECG members are eligible for a
preferential rate when registering at
the event (€545 as opposed to
€695).
Interested members should contact
Wiliam Bixby and quote the
ECG/INV reference code.
More information here.
► ECG Maritime & Ports
Working Group Meeting, 29-30th
September, Port of Bristol, UK
►ECG Land Transport Working
Group Meeting, on 30h
September, Frankfurt, Germany
►ECG Annual Conference, on
15-16th October, Vienna, Austria
► ECG Quality Working Group
Meeting, 3rd November, Brussels,
Belgium
►ECG Academy Alumni
Meeting, on 6th November, Berlin,
Germany
►ECG UK & Ireland Regional
Meeting, on 12th November,
London, UK
►Automotive Supply Chain
Global Awards, on 12th
November 2015, London, UK
NEWS FROM BRUSSELS
ECG publishes a new version of ‘Finished Vehicle Logistics by
Rail in Europe’ book
(Source: ECG, 9th September 2015) ECG
published this week a new version of its
publication ‘Finished Vehicle Logistics by
Rail in Europe’ (version 2) on its website.
This publication was made under the
auspices of the ECG Land Transport
Working Group. The first draft of this book
was prepared last year. Since then the
document has expanded significantly,
covering various rail topics that range from
history of railways in Europe to technical
specifications of FVL wagons, logistics
activities by rail. It also encompasses
topics related to EU and national
regulations for the rail transport, a list of
existing national and international rail
organisations, etc. The book finishes with a
comprehensive glossary of rail freight
terminology as well as railway maps for
each EU and some non-EU countries. The
final pages contain useful links and references for further information related to
rail transport.
The newly updated and extended version 2, now available on the ECG website,
contains an additional section dedicated to rail noise and wagon brake systems.
This part briefly covers the EU and national regulations regarding rail noise,
sources and measurement of rail noise, various solutions for its reduction, and,
finally, a brief overview of composite brake block systems.
You may download this document free of charge from the ECG website. In case
you would like to purchase a hard copy of the ‘Finished Vehicle Logistics by Rail
in Europe’ for the price of €50, please complete the order form and send it to the
ECG Secretariat.
AUTOMOTIVE INDUSTRY
Kia signs deal to bring new port operation to Stallingborough
(Source: Automotive Purchasing, 8th September 2015) A multi-million pound 10
year deal has been signed by Kia Motors UK and Paragon to operate a key
automotive storage and preparation centre at Stallingborough, North East
Lincolnshire to handle and process up to 120,000 cars every year. The operation
will move from the existing site in Killingholme by December 2015, expecting to
employ 150 staff – these include existing Paragon and GBA staff but will also
create new roles and opportunities for the local area. The specialist facilities will
allow Kia vehicles to be fitted out to buyers’ specification before distribution to
Kia’s 185 UK dealers. Injecting millions into the future of Stallingborough, the
purchase will see the development of 88 acres of land to a fully functioning
compound for automotive storage, preparation and distribution. The purchase of
the land totals £9m, which will involve re-development and extension of the
existing workshop and bodyshop to encompass state of the art facilities
spanning over 75,000 square feet. “The port on the Humber is a strategic and
extremely important part of Kia’s UK car import and distribution,” said Yaser
Shabsogh, Commercial Director of Kia. “The facilities which will be available for
us to process our cars will be fantastically state of the art, and will allow us to
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
2
ECG Academy
Course 10 will start in
October!
keep delivering expertly designed, quality vehicles to our dealerships up and
down the UK.” Mark Hindley, Commercial Director of Paragon added, “We are
delighted to have this opportunity to develop a flagship technical centre for Kia
Motors UK, which will process up to 120,000 new and used vehicles each year.
This partnership will allow us to invest in facilities and people in the North East, to
provide an excellent service and one which is hugely important of the UK’s car
import structure.”
Carmakers localise engine production in Russia
This practice oriented course
takes place over five modules, 24
days of intensive training. The
modules are held at different
locations in Europe (Vienna,
Bremen, Barcelona, Edlbach and
Lago Maggiore) to give the
participants practical insights. It is
targeted at both experienced
practitioners and new entrants to
the supply chain management.
Benefits:
 Acquiring a vast wealth of
knowledge in an accelerated
timeframe, but in as much
depth as it is required
 Unique networking
opportunities. Each course
brings together around 20
individuals representing
companies from across Europe
 The course culminates in the
award of a Certificate in
Automobile Logistics
Management, which is an
accredited qualification.
For more information please
have a look at the ECG
website
and
contact
info@ecgassociation.eu
(Source: Automotive Logistics News, 8th September 2015) Despite the continued
slump in the Russian automotive market, a number of foreign OEMs are localising
engine production in the country. Volkswagen and Ford have opened facilities in
Russia in the last weeks and Mazda’ joint venture with Russian OEM Sollers has
signed a memorandum with the government to establish an engine plant in the
Far East region of the country. The various moves come ahead of the demands
made under Decree 166, the agreement foreign carmakers have made with the
Russian government to increase local content in at least 30% of vehicles made in
Russia by next year. Volkswagen is making 1.6-litre engines at its newly
constructed $279m facility in Kaluga and plans to introduce the EA211 gasoline
engine in the near future. The carmaker has completed the plant within three
years following its announcement back in 2012. Production capacity is set for
approximately 150,000 engines a year for instalment in VW brand and Skoda
models, including the VW Polo and the Skoda Rapid, which are made in Kaluga
at VW’s nearby assembly plant. The engines will also be used in the VW Jetta
and Skoda Octavia and Yeti models, built with Russian carmaker GAZ at the
companies’ joint venture plant in Nizhny Novgorod. “With our new, modern engine
plant, we will be supplying engines produced locally for our vehicles
manufactured in Kaluga and Nizhny Novgorod,” said Marcus Osegowitsch,
General Manager of Volkswagen Group Rus. “We will therefore not only be
increasing the local content of our cars, we will also be making them more
affordable for our Russian customers.” The new engine plant has an area of
32,000m2 and is to produce up to 600 modern 1.6-litre gasoline engines of the
newly developed EA211 series per day. The move to locally produce engines
means VW is fulfilling its obligation to supply at least 30% of the vehicles it makes
in Russia with engines made in the country. Meanwhile, Ford has started
production of 1.6-litre Duratec engines at its newly constructed $275m engine
plant in Elabuga. They will be installed in models including the Ford Fiesta, Focus
and EcoSport, which are built by Ford’s joint venture with Sollers in Russia. The
facility has an annual capacity of up to 105,000 units, with the possibility for
further expansion of up to 200,000 engines a year. As with VW’s output, at least
30% of Russian-built Ford vehicles will be equipped with the locally-built engines.
“Our main target in line with our long-term localisation strategy was to launch
engine production with a significant level of localisation,” said Adil Shirinov,
Executive Director and CEO of Ford Sollers. “We are proud to say that we are not
only sourcing main parts from Russian companies, but they also are
manufactured from local raw materials. We are fully committed to this strategy
which is key for our business in the current environment.” Ford Sollers now
produces seven vehicles in Russia. As well as the EcoSport, Kuga and Explorer,
it launched production of the all-new Mondeo, new Focus, new Fiesta and new
Transit earlier this year. The Ford Sollers Elabuga Engine Plant occupies 42,600
m2 and is located in the Alabuga special economic zone, next to one of the three
Ford Sollers vehicle assembly plants in Russia. There is a further plant in
Elabuga and another in Vsevolozhsk. Mazda and Sollers, meanwhile, have
announced memorandum of understanding with the Russian government to set
up an engine plant at the site of their joint venture plant in Vladivostok in the Far
East region. Mazda Sollers Manufacturing Rus has produced around 80,000
vehicles since it began operations in 2012. “We are pleased to have been able to
make a contribution to this region by creating employment and helping to develop
a culture of monozukuri, or manufacturing,” said Mazda’s representative Director,
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
3
Now available!
The ECG Survey of
Vehicle Logistics
2014-2015
President and CEO, Masasmichi Kogai, at the signing of the agreement last
week. “This success has been possible thanks not only to our great partnership
with Sollers but also to the continued support of the Russian government, the
Primorsky region and the government of Japan.”
EUROPE
Renault begins export through Valencia port
 Combines
global
and
European
data
and
information on the automotive
industry in general, and the
finished
vehicle
logistics
sector in particular
 The only publication for the
European Vehicle Logistics
sector, also covering Russia,
Turkey and Ukraine
Find more
information and
order your copy
here!
(Source: Automotive Logistics News, 8th September 2015) Renault has begun
exporting its Kadjar model through the Port of Valencia, on Spain’s Mediterranean
coast, for the first time. Manufacture of the Kadjar takes place at Renault’s Venta
de Baños plant at Palencia, in north central Spain, with consignments shipped to
the coast by rail via Madrid. The first shipment, which was undertaken by
Transfesa, consisted of 20 car carriers loaded with 200 units. Once at Valencia,
the Kadjars were exported to a number of destinations around the Mediterranean.
Valencia continues to report burgeoning finished vehicles traffic. In 2014, for
example, the port handled 2,195 Renault units for the entire year, while for the
first six months of the current year this had increased to 2,953 units, equivalent to
growth of 58%. The vast bulk of Renault vehicles built in Spain do, nevertheless,
logically still move through ports on the northern coast, such as Santander and
Vigo. Also at Valencia and Sagunto, which is managed by the same port
authority, first half traffic was up 29.95% compared to the same period in 2014,
with a total of 348,041 units passing through both ports. Separately, national rail
carrier Renfe Mercancías has put into regular daily service a 600-metre long car
carrier train between Renault’s Palencia factory and the Port of Santander. Block
trains now consist of 20 rather than 18 wagons, which can carry an additional 20
units, up 15% in terms of capacity than previously. The improved service was
developed as part of the sales push put behind the Kadjar by Renault, according
to Renfe. In October, Renfe hopes to launch a second daily train of the same
length.
Channel Tunnel ‘massively underused for rail freight’
(Source: Lloyd Loading List, 9th September 2015) Unaffordable infrastructure
charges are holding back the “fantastic potential” for Channel Tunnel rail freight
services and causing the massive under-utilisation of its international freight train
capacity, the UK’s Freight Transport Association (FTA) claims. The FTA’s rail
freight policy manager, Chris MacRae, told Lloyd’s Loading List.com: “Eurotunnel
appears to charge for freight train access on the basis of recovering the entire
sunk capital cost of the assets. This means that the rate paid by rail freight
operators - and which inevitably is passed on to their customers - is far higher
than, for example, Network Rail in the UK would charge for an equivalent 40kilometre train journey. This the fundamental reason why relatively little rail freight
(as opposed to road-borne freight transported on shuttle trains) has been carried
through the Channel Tunnel since it opened over 20 years ago, and well below
forecast.” MacRae said there was a long-running issue over how Eurotunnel
operates its charging structure. “This hinges around whether the Channel Tunnel
should be classed as ‘special infrastructure’, or should it be viewed as being
within the scope of the EU’s freight train access charging scheme? This is a point
of contest and there have been legal ‘infraction’ proceedings taken by the
European Commission against the French and British governments.” Eurotunnel’s
management has responded in the past 18 months by making the Tunnel more
accessible financially to operators through producing some headline cuts in
freight track access charges and also providing incentives for start-up schemes
for new services. “All this has been very welcome but it hasn’t addressed the
fundamental underlying issue of the ‘architecture’ of Eurotunnel’s actual charging
scheme,” said MacRae. “There has been growth in rail freight train traffic through
the Tunnel, but this has been from a very small base. “Neither would Eurotunnel’s
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
4
Version 5 of the ECG
Operations Quality
Manual for PCs and
LCVs are available
online!
pricing policies appear to address the imbalance between inbound traffic (to the
UK) with trains returning outbound (to the mainland Europe) empty. Normal
economic sense would dictate that when you have a seriously under-utilised
asset, you need to find ways of getting considerably more use of it and, by doing
so, generate greater revenue. But this is not happening and it is weighing heavily
on the development of cross-Channel rail freight.” He continued: “FTA and its
members remain committed to the increasing use of rail freight, including on
cross-Channel routes, and therefore support further policy work to assist in
finding a stable and supportive commercial charging regime to support this. This
is reflected in our ‘Agenda for More Rail Freight’ policy, which we have previously
shared with the Office of Rail Regulation (ORR).”
Truck fuel-economy standards needed, says German
Environment Agency
 Written by the Quality Working
Group and the H&H Working
Group composed of OEMs
and LSPs.
 The
manuals
can
be
downloaded from here
For comments or inquiries please
contact: info@ecgassociation.eu
(Source: Transport & Environment, 7th September 2015) Germany’s federal
environment agency, UBA, has backed calls for truck fuel efficiency standards,
saying ‘a much more intensive discussion about CO 2 standards for heavy goods
vehicles’ and ‘ambitious regulation’ are required. Citing ever-greater volumes of
goods being transported by road and the trend towards more powerful and
heavier vehicles, the agency said the transport sector must step up its efforts on
climate action. The UK, Belgium and the Netherlands have also joined
Germany’s call to set CO2 limits for new trucks. Road traffic accounted for 95% of
the transport sector’s greenhouse gas emissions in Germany, according to UBA,
while road freight traffic increased by about 31% between 2000 and 2013. Trucks
and buses accounted for around 30% of the world’s road transport CO2 in 2012.
Due to growing traffic and improvements in passenger cars and vans by 2030
this will increase to almost 40%. According to the International Transport Forum,
emissions by trucks and buses are on their way to become the biggest source of
transport emissions globally. Pressure has been building on the EU to act on
lorry fuel efficiency standards since the US authorities announced new targets for
CO2 reductions from its fleet. The US Environmental Protection Agency in June
proposed a 24% improvement in truck fuel economy by 2027, on top of limits
introduced in 2011. Under the new US proposal, trucks there – which now
average 33-36l/100km – will overtake Europe’s in the early 2020s and average
less than 26.7l/100km by 2027. The EPA estimates this second phase of
standards will save US truck owners €150bn in fuel costs over the lifetime of the
vehicles. T&E said EU inaction threatened Europe’s technology leadership as the
new US standard will bring forward the rollout of advanced technology in
America, such as waste heat recovery systems being developed in Europe by
Bosch, as well as better tires, more efficient transmission and hybrid engines.
Access to Europe’s truck CO2 test procedure VECTO, which is being finalised by
the European Commission, must be opened to truck users, transport industry and
green groups have warned. If the software simulation is to have a real impact on
the market, truck users need to have access to it, according to the eight groups in
a letter to Commission officials. Access to VECTO would enable truck buyers to
compare how their preferred vehicles and fuel saving technologies perform on
their specific routes or journeys, increasing comparability, choice and
competition. However, truck manufacturers vehemently oppose it, claiming such
a move would disclose commercially sensitive information.
REST OF THE WORLD
Daimler and Renault-Nissan break ground for new jointventure plant in Mexico
(Source: Automotive Purchasing, 4th September 2015) Daimler and the RenaultNissan Alliance have broken ground for their joint-venture manufacturing
complex, COMPAS (Co-operation Manufacturing Plant Aguascalientes), in
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
5
Briefing paper on
the sulphur
content in marine
fuels updated
As the Regulation on sulphur
content in marine fuels came into
force on 1st January, ECG has
updated its Briefing paper to
better inform our readers.
The new rules affect companies
that operate routes in the
Sulphur Emission Control Areas
(SECAs), i.e. the North Sea with
the English Channel and the
Baltic Sea. In these zones the
sulphur content of the fuel may
not surpass 0.1% which is a
great technical and financial
challenge for these operators.
The Briefing paper contains IMO
and EU regulatory background
and analysis of the latest
developments, as well as a
glossary of terms.
Download your copy from the
ECG Website !
Mexico, for next-generation premium compacts. “Today marks an important
milestone for the partnership between Daimler and the Renault-Nissan Alliance.
This new joint plant will help both partners serve their respective customers faster
and with more flexibility. As Mercedes-Benz’ first production location for compact
cars in the NAFTA region, it will also significantly enlarge our footprint here,” said
Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars,
Production and Supply Chain Management. “On our end, while sharing high
efficiency and flexibility in the joint venture, we will add Mercedes-Benz specific
technology as well as further training and assistance by our global lead plant for
compact cars in Rastatt, Germany. This proven approach will guarantee that our
quality here in Aguascalientes will be the same as at the other locations of our
global compact car production network in Europe and China.” Compas is 50:50
owned by Daimler and Nissan. The partners will invest a total of $1bn in the joint
venture which will oversee the construction and operation of the state-of-the-art
manufacturing plant. “This new plant represents yet another example of the
growing collaboration between the Renault-Nissan Alliance and Daimler. Mexico
is a global benchmark for quality and efficiency and is a major reason why
Daimler and Nissan have decided to produce the next generations of premium
compact cars for Mercedes-Benz and Infiniti here in Aguascalientes. What we are
celebrating today has also been made possible through our close collaboration
and partnership with both the state and Federal governments,” said Jose Muñoz,
Executive Vice President, Nissan and Chairman, Management Committee –
Nissan North America. Located near the Nissan Aguascalientes A2 plant,
Compas will have an initial annual production capacity of more than 230,000
vehicles and will create about 3,600 direct jobs by 2020. Depending on the
market development and customer demand, there will be the potential to add
additional capacity. Production of Infiniti vehicles will begin in 2017, while the first
Mercedes-Benz vehicles will roll off the line in 2018. In addition to the direct
employment it provides, Compas is also expected to generate some 12,000
indirect jobs – largely due to a high localisation rate which will significantly
increase the Mexican supply base. Compas is led by an international
management team from Daimler and Nissan: Ryoji Kurosawa, CEO, Uwe
Jarosch, CFO, and Glaucio Leite, CQO. Aguascalientes Governor Carlos Lozano
de la Torre said the new plant will be an important source of jobs for the people of
Aguascalientes. “This first stone reaffirms Aguascalientes’s position as a major
manufacturing base for the global auto industry. We will continue to encourage
public and private partnerships to strengthen our position as a base for the
world’s most important industries.” As announced in June 2014, Daimler and the
Renault-Nissan Alliance will also co-operate in the development of the nextgeneration premium compact vehicles for the brands Mercedes-Benz and Infiniti.
The two partners will closely collaborate at every stage of the product creation
process. Brand identity will be safeguarded as the Mercedes-Benz and Infiniti
vehicles will clearly differ from each other in terms of product design, driving
characteristics, and specifications. Daimler and the Renault-Nissan Alliance will
also produce the next-generation premium compact cars at other production
locations around the world, including Europe and China. Mexico is already a key
location for Daimler with a total of around 8,000 employees. The group has
production plants for trucks and buses in Saltillo, Santiago Tianguistenco, and
Garcia, a parts distribution centre in San Luis Potosí and a remanufacturing plant,
a product delivery centre, and a training centre for passenger cars located in
Toluca. Nissan has been producing vehicles in Aguascalientes since 1992 and is
known for its award-winning, highly efficient workforce. In November 2013,
Nissan opened a second manufacturing complex in Aguascalientes,
Aguascalientes A2. Nissan also has a plant in Cuernavaca. Together, the three
plants have an annual production capacity of 850,000 vehicles. Nissan is the
leading automaker in Mexico, accounting for one in four cars sold.
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
6
Events in Brussels
Rail Forum Europe organizes an
event ‘On track to COP21: The
role of rail in sustainable mobility’
on 14th September
The European Transport Forum
will be held on 29th September
and will focus on ITS and data
information
exchange
while
respecting data privacy
The
European
Commission
organizes the European Mobility
Week on 16-22nd September
The
European
Commission
organizes the Conference on
Incident Reporting in Land
Transport Security at the EU level
on 6th October. Two of the four
subjects covered will be road and
rail cargo theft.
ACEA will dedicate its annual
conference
to
HGVs.
The
‘Reducing CO2 from Road
Transport Together’ event will be
held on 3rd December
Renault aims to take lead from PSA in post-sanction Iran
(Source: Automotive News Europe, 6th September 2015) Renault plans to
become the biggest-selling European carmaker in Iran, the Middle East’s largest
market, ahead of French rival PSA Peugeot-Citroën, sources say. PSA has been
struggling to negotiate a bigger manufacturing deal with partner Iran Khodro, the
country’s largest automaker, amid lingering anger over its abrupt 2011
withdrawal. Now Renault plans to use $560m of its cash that had been trapped in
Iran to seize the advantage, after July’s international deal to lift sanctions in
exchange for nuclear curbs on Tehran, people familiar with the matter said. “Our
strategy is to be the biggest carmaker in the country,” said a Renault source with
knowledge of the discussions. “PSA has made a lot of statements (about Iran).
Chickens shouldn’t be counted before they are hatched.” With 80 million
consumers and 1.1 million cars sold in 2014, Iran has potential for rapid growth.
The lifting of international sanctions may begin as soon as March, the UK’s
Foreign Minister said last week, opening the way for investment. For Renault and
Nissan, its alliance partner, Iranian production would bolster an already strong
presence in emerging markets. Reclaiming Iran is even more critical for PSA,
racing to expand outside Europe after a brush with bankruptcy. The company
said recently it was counting on Iran for about 400,000 annual vehicle sales by
2020. PSA remains in talks “with various partners including Iran Khodro” on a
manufacturing venture, a spokesman said. Renault declined to comment. The
tussle pits PSA CEO Carlos Tavares against his former boss, Renault CEO
Carlos Ghosn, for the main prize - a major manufacturing deal with Iran Khodro.
Under earlier agreements with both French carmakers, the Iranian company
builds Renault and Peugeot models from complete knock-downs kits (CKD).
PSA’s Iran sales peaked at 458,000 vehicles, nearly 30% of the market, before it
halted deliveries four years ago under pressure from then-partner General
Motors. PSA now tolerates Iran Khodro’s “unauthorized” assembly of Peugeots
from grey-market parts. But their estrangement is a gift to Renault, Volkswagen
and other rivals now poised to muscle in. VW said in July that it is in talks to enter
Iran. “Peugeot must know that it must account for its past behaviour,” Iran Khodro
chief Hashem Yakke-Zare told state-owned PressTV in late July, adding that the
carmaker “will not be our main partner.” Renault has been working behind the
scenes to fill that vacancy, company sources said, and sees potential for annual
production of 400,000 cars in Iran by 2020. “Unlike PSA we have always
remained in Iran,” a Renault source said. “Loyalty should pay.” Renault is also
touting lower-cost vehicle platforms that its rivals mostly lack. VW has been
struggling for years to develop dedicated emerging-market cars, while PSA’s
equivalent line-up will not begin to reach showrooms before 2019. Industry
forecaster IHS Automotive expects Renault to claim as much as 12% of a
transformed Iranian market in 2020, two or three percentage points ahead of
PSA. Renault’s extensive line-up of affordable cars is “best positioned for Iran,”
IHS analyst Michel Jacinto said. Under existing partnerships with Iran Khodro and
smaller player SAIPA, Renault is preparing CKD production of its Sandero small
car and Logan pickup while discussing a full manufacturing investment to include
an SUV just launched in India. Financial sanctions that had stranded Renault’s
Iranian earnings now offer a head start, by keeping rivals out until the embargoes
are lifted in coming months. “Rather than repatriating the cash, the idea is to
make the most of it,” another Renault source said. One possibility is “to buy a
chunk of an Iranian company”, he added - an option that was rejected as too risky
when last considered more than a decade ago. Renault and PSA executives are
expected to join a French business delegation visiting Iran 21st-23rd September.
The French government, a major shareholder in both carmakers, has “put the
case for the two groups” to Iranian leaders, Foreign Minister Laurent Fabius said
on 30th July. While Renault’s plans were “positively welcomed,” Tehran officials
still criticise PSA for its earlier retreat, Fabius said. “So that may prove more
difficult.”
ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels
Tel: +32-2-706-82-80, info@ecgassociation.eu; www.ecgassociation.eu
7
ECG Office
Mike Sturgeon
Executive Director
T: +32 2 706 8282
Mike.sturgeon@ecgassoci
ation.eu
Cliona Cunningham
External Relations
Manager
T : +32 2 706 8285
cliona.cunningham@ecgas
sociation.eu
Oleh Shchuryk
Research & Projects
Manager
T: +32 2 706 8279
oleh.shchuryk@ecgassocia
tion.eu
Szilvi Kiss
Research & Projects
Manager
T: +32 2 706 8284
szilvi.kiss@ecgassociation.
eu
Sercan Iscan
Communications and
Events Officer
T: +32 2 706 8280
info@ecgassociation.eu
India announces second 10-year Automotive Mission Plan
(Source: Automotive Logistics News, 9th September 2015) At last week’s annual
convention of the Society of Indian Automobile Manufacturers (SIAM), the Indian
government revealed preliminary details of its second Automotive Mission Plan
(AMP). The plan, which was reported in The Economic Times, covers the
2016-2026 period and aims to achieve a fourfold growth in the industry over that
time to reach between $260-300bn. The plan also aims to make India among the
top three automotive industries in the world with passenger car sales predicted to
reach between 9.4m-13.4m by 2016 (it is currently the fifth largest automotive
market). According to forecasts from analyst PwC, over the next 10 years light
vehicle assembly in India is set to increase by almost 194% to reach 10.8m units,
putting it in third place in terms of production behind China and the US. PwC’s
forecasts for light vehicle sales, meanwhile, show an increase of almost 238%
between 2015 and 2025 to reach 10.2m units, again a third place position behind
China and the US. However, it is noticeable that in both cases, India’s increase is
by far the biggest, with China’s increase in both production and sales over the
coming decade around the 50% mark and the US way down, with a 5.7%
increase in assembly over the period and a 9% increase in sales. To support
India’s growth the government said it would be investing to improve infrastructure
and also looking to increase exports to between 35-40% of overall output. The
second phase of the AMP will also aim to increase annual commercial vehicle
sales to between 2m-4m units, up from 700,000 last year, and grow tractor sales
from 600,000 to between 1.5m-1.7m units over the same period. On the inbound
side the government plans will seek a reduction in import duties on raw materials
and, as well as implementing the much anticipated Goods and Service Tax (GST)
Bill. In December last year, the Indian government approved the constitutional
amendment bill, and plans to roll out the tax from April 2016. GST will rationalise
state and central indirect taxes into a harmonised goods and services tax, and
create a unified market, which will help allow seamless movement of goods
across states, an especially important move for the automotive logistics industry
that will hopefully also reduce business costs. According to industry analyst, IHS
Automotive, while preliminary details and figures have been released, the plan
lacks clarity in the form of policy direction and real-time benefits for the Indian
carmakers. A number of those carmakers that were approached on the
implications of the plan were unwilling to comment. Neither was SIAM. There are
a number of economic issues, including investment in infrastructure, that need to
be addressed in India, though ironically, it is a lack of public infrastructure that
has been fuelling car sales. “India’s growth story rests on internal consumption to
a great extent while exports, amid a lack of favourable trade agreements with key
economies, largely depend on the labour and material cost advantage,” said IHS
Automotive in a briefing. “The country’s domestic market suffers from high
inflation and interest rates, but growing urbanisation and lack of public
infrastructure have been fuelling domestic demand for vehicles, particularly in the
passenger vehicle segment.” The AMP was launched into its first phase in 2006
for an initial 10-year period with the aim of making India a favourable production
location for global vehicle manufacturers. The plan focused on boosting
competitiveness in the domestic vehicle manufacturing industry and the flow of
technology, demand, brand building and infrastructure, amongst other areas.
Between 2005 and 2015 Indian vehicle production jumped by 189.6% to 3.8m
vehicles last year from 1.3m in 2005, according to figures from PwC. Sales in the
country increased by 156% to 3.04m last year, up from 1.18m in 2005.
Tom Antonissen
EU Affairs Adviser
T: +32 2 706 8283
tom.antonissen@ecgassoc
iation.eu
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NYK signs deal to develop Ro-Ro in Saudi; JLR pulls plans on plant there
(Source: Automotive Logistics News, 9th September 2015) Global shipping line, NYK, has signed a joint
venture with the owner and developer of King Abdullah port in Saudi Arabia – Ports Development Company
(PDC) – to build a Ro-Ro terminal there. Due to be fully operational in the third quarter of 2016, KAP RoRo
Terminal will be the first terminal dedicated to Ro-Ro cargo in the country and NYK’s first automotive
logistics facility in the Middle East region. The terminal will have capacity to handle 600,000 vehicle units a
year according to NYK, which it said would address increasing demand from a growing market in the
Middle East. NYK did not provide further details on the development other than to say it would continue to
respond to customers’ demands in the Middle East regain as part of its ‘More Than Shipping 2018’
management plan. There was no word either on which carmakers were expected to be principal customers
for services through the terminal from next year. One carmaker who it appears will not be using it for
exports though is Jaguar Land Rover, following reports that it is pulling plans on building a facility in the
country. According to The Financial Times the carmaker’s plans to build a factory have been “quietly
scrapped”. Last year JLR signed a letter of intent with the Saudi government’s National Industrial Clusters
Development Programme to examine the financial viability of building cars in the Middle East. That followed
the carmaker signing a preliminary agreement with the Saudi Ministry of Commerce to build a plant there to
produce 50,000 Land Rovers a year from 2017. “Jaguar Land Rover continues to have ambitious plans for
growth globally and regularly reviews opportunities to secure further manufacturing capacity in a range of
markets,” said the company in a statement sent to Automotive Logistics. “Our manufacturing plans for UK,
China, Brazil and Europe are our main focus and priority at this time.”
PRESS RELEASES
ABP celebrates the start of 2015 London International Shipping Week
(Source: ABP, 8th September 2015) Associated British Ports (ABP) hosted a major reception on the eve
of 7th September to celebrate the start of the 2015 London International Shipping Week.
Held at Westminster Abbey, the event was attended by more than 200 guests from across the shipping and
maritime industry. Guests included the Secretary of State for Transport Rt Hon Patrick McLoughlin MP, and
Shipping Minister, Robert Goodwill MP.
Speaking at the event, ABP Chief Executive James Cooper praised the government for its support of
London International Shipping Week.
“ABP is proud to continue to support an initiative that showcases Britain’s expertise in the maritime sector
to a global audience. The Department for Transport deserves great credit for its commitment to London
International Shipping Week.”
Mr Cooper also welcomed the Government’s Maritime Growth Study: “Over the longer term, ports and
maritime should be at the heart of the Government’s productivity and growth agenda.
“It is vital that we build on this study, and build a momentum that makes sure ports and maritime remain a
driving force in boosting productivity and growth across the UK.”
The event also saw the launch of Maritime Nation by Brian Johnson, Solent LEP Director: “Britain has a
great history as a Maritime Nation. For years our maritime industries have had a central role in delivering
the nation’s trade and prosperity. They are an important part of our history, but they are also an essential
part of our future.
“Through a shared platform, the ambition of Maritime Nation is to strengthen the UK’s position as a global
leader in marine and maritime, maximising investment in the sector to increase productivity and growth
across our entire economy.”
Speaking after the event, the Secretary of State for Transport Rt Hon Patrick McLoughlin MP, said:
“London International Shipping Week is an opportunity to remind the world of the benefits Britain offers,
whether it’s our world-leading ports, maritime business services or skilled workforce. We are determined to
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grow our share of the global maritime sector, helping talented people find careers in its industries and
attracting companies to do business in the UK.
“Our maritime history is something Britain can be proud of, but the sector is taking us into the future. I want
Britain to feel the benefit of its international reputation by driving economic growth and increasing jobs. We
have already seen millions invested in the UK, demonstrating the central place Britain already holds in the
industry.”
Ro-Ro traffic: HAROPA accommodates the « new generation » vessel of Höegh
Autoliners
(Source: HAROPA, 4th September 2015) On Monday, 7th September, the Ro-Ro terminal in Le Havre will
welcome the M/V Höegh Target, the first of a series of six Post-Panamax vessels that the ship-owner
Höegh Autoliners has planned to build within the next 18 months. With a carrying capacity of 8,500 CEU
(Car Equivalent Units), the vessel is now the largest PCTC (Pure car & truck carrier) worldwide; it has a
deck space of 71,400 m2, a stern ramp capacity of 375 tons and a door 6.50 m high.
According to Steinar Løvdal, Head of Capacity
Management with Höegh Autoliners, “The launch of
the Höegh Target is a milestone in the company’s
history. This is the first Post-Panamax PCTC we
have and the New Horizon design truly represents
state-of-the-art engineering.”
“This call of the world largest Ro-Ro vessel confirms
our port as the largest French platform for the
import/export of new vehicles” Hervé Cornède,
Commercial and Marketing Director of HAROPA,
likes to say, reminding the “quality” initiative
launched on the terminal of Le Havre: “showing their
will in terms of quality and security, all stakeholders of the Ro-Ro sector prepare together – and with the
support of ECG - a guide to good practices for vehicle handling”. The port also aims to develop on secondhand, “high & heavy” machines, heavy trucks and industrial projects markets; all of them using Ro-Ro
shipping services.
The business offer of Höegh Autoliners via HAROPA - Port of Le Havre covers several continents. Every
ten days, a service of the shipping line serves the South-African countries as well as those in Oceania.
Twice a month, a service connects the ports in the Mexican Gulf and the Caribbean Islands and another
heads for ports in the Middle-East up to India, with possibilities of connection with Far-Eastern countries.
As for the Höegh Target, its first trips will be on the South Africa/Indian Ocean/Oceania route.
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