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SB Global Logistics strikes oil with new agency

SB Global Logistics strikes oil with new agency

Christchurch company S B Global Logistics looks to have "struck oil"
with the signing of a new network agreement with French multi-national company SDV International Logistics.

Along with its 500 offices in 88 countries, SDV is a recognised specialist in oil and mining logistics as well as aerospace logistics.

Stephen Bateman, managing director of S B Global Logistics, said signing the agreement could not have happened at a better time with the amount of oil exploration planned for the South Island over the next couple of years.

"SDV currently has two offices in New Zealand, its head office in Auckland and a support office in New Plymouth to manage its oil and gas logistics activities in Taranaki.

"The exciting thing about being involved in the oil and gas industry is that contracts can last a long time. Should oil be discovered in the South Island then the logistics contract could last for 20 years,' he said.

Chris James, managing director of SDV New Zealand, said that this agreement with S B Global Logistics was timely considering the upcoming exploration programme and also the lift in exports sparked by the falling dollar.

For over 16 years Christchurch based SB Global Logistics has had a network agreement for the South Island with German Transport and Logistics provider DB Logistics (Schenker). During that time SB and Schenker have had a very positive, healthy working relationship highlighted by many successful projects undertaken together.

In January this year DB Logistics purchased global Supply Chain Provider BAX Global. BAX currently operates out of four locations in New Zealand including an office in Christchurch. The merger of the two organisations, BAX Global and Schenker and the fact that BAX has a full operation in Christchurch, has lead both companies relinquish ties.

Bateman said it was a very tough decision but SB Global Logistics and Schenker have decided to part company by mutual agreement. "We have had a great working relationship and the decision has not been taken lightly.

"As it has turned out, SDV¹s size and speed of response appears perfect for S B Global Logistics. They seem to be more flexible than other big international companies and they are actively looking for new trade lanes.

"There has been quite a change in the global logistics business in the last few years and we are excited about the future. Export volumes are up about 10%, thanks mainly to the falling dollar, but also the efficiencies of the companies involved. Those who have survived some pretty hard times over the last few years are now well positioned to take advantage of the falling currency. As well, the growth has been pretty broad across a range of manufacturers exporting to a wide range of countries.

There has also been a dramatic shift in the way companies are dealing with their warehousing.

"Many firms are getting out of warehousing leaving it to specialist companies like ours to organise. We have extended our warehousing capabilities twice in the last few years and we are continually looking to maximise our warehouse capacity to meet increased demand. This situation has been exacerbated by the fact many firms are holding greater levels of stock than previously.

³Logistics are being recognised by many companies as a specialist area and they are contracting out this aspect of their business so they can concentrate on their core activities,² Bateman said.


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