When Militzer & Münch opened its country unit in Serbia in October 2019, the logistics provider already planned to expand further in the Balkan region. Thus, in summer 2021, Militzer & Münch not only founded two more country units there, Militzer & Münch Bosnia-Herzegovina, and Militzer & Münch Montenegro, but also started its own courier service in Serbia in early 2022.
“We have made it our goal to expand our network to cover the entire Balkan region,” says Nikola Vasiljevic, Executive Director of the three Balkan country units. “With Bosnia and Herzegovina and Montenegro, we have already taken the first steps in this direction.” Both country units currently count three employees each; road transportation is the main business, but warehousing and customs clearance are offered as well.
Correct market assessment Most of the customers in Bosnia-Herzegovina and Montenegro are already long-standing Militzer & Münch customers in Serbia. For both new markets, however, the last two years were highly unpredictable and challenging, due to the impact of the Corona pandemic, the war in Ukraine, and supply shortages. “Despite the many hurdles we had to overcome, we were able to adapt and grow,” says Nikola Vasiljevic. “We have been able to correctly assess the market, take our service to a new level and find the best solution for each customer need.”
Meeting the demand Yet it is not only geographically that Militzer & Münch is growing in the Balkan region; the service portfolio in Serbia has also been expanded. “During the pandemic, it became apparent that there is a high demand for top-quality, safe and fast courier services,” says Nikola Vasiljevic. “Which is why we decided to establish M&M Express at the beginning of 2022.” The courier service already employs 20 drivers and operates a fleet of 18 delivery vans – all of which “M&M Express” branded. The team handles 15,000 to 20,000 shipments a month from 200 terminals and also offers to pick up shipments on site if requested.
Innovation and automation As the business grew, Militzer & Münch Serbia decided to invest in innovation and automation. The company built a new 1,000-square-meter cross-dock between the existing warehouses in Dobanovci, Serbia. Cross-docking means that goods are no longer stored, but are handled directly and forwarded to customers. The new automated building is equipped with conveyor belts, sorting machines and elevators that lift goods to shelves and mezzanines. At the cross-dock facility, Militzer & Münch Serbia can process up to 2,000 shipments per hour. Deliveries pass through a scanner, are recorded by the warehouse management software, and automatically sorted according to 31 zones. “Automation has allowed us to dramatically increase efficiency and boost capacity,” says Nikola Vasiljevic. “Our courier service is growing day by day, and we expect to have expanded significantly by the end of the year, covering the entire territory of the Republic of Serbia with our courier service.”
Militzer & Münch Turkmenistan Ltd. offers its customers comprehensive transport logistics services in the fields of road, air, sea, and project transports – and, as an additional service, crane rental.
In the year 2008, the Turkmenistan country unit launched the service with two cranes, and in 2015, two more were added. There is demand for the special technology, especially from internationally active energy companies, such as Eni or Dragon Oil. “The oil and gas industry is an important sector in Turkmenistan, and we are seeing high demand here. But customers from the construction industry also make use of our service”, reports Djeyhun Hummedov, Managing Director of M&M Militzer & Münch Turkmenistan Ltd.
In the context of oil drilling operations, for example most recently in the Caspian Sea, the cranes are used onshore to move the platforms between job sites. On the offshore platforms themselves, the cranes transport cargo. A crane can lift up to 75 tons.
The offshore operations also present challenges: “The very high salinity can lead to corrosion on the metal parts of the cranes,” says Djeyhun Hummedov. “Regular inspection and maintenance are therefore essential to ensure that the cranes function properly.” The crane operators employed specifically for crane rental at Militzer & Münch Turkmenistan have a special permit to work on the platforms and are regularly trained in occupational safety.
Djeyhun Hummedov: “Customers who rent our cranes not only get modern technology, but also qualified personnel and full service – from erecting and dismantling the platforms to prompt repair and spare parts delivery.”
Earthquake, pandemic, inflation – in the year 2023, the people in Turkey have to cope with severe catastrophes and challenges that seem almost insurmountable. But economic uncertainties and global turbulences are by no means new to the employees of Militzer & Münch’s Turkish subsidiary – and they know how to deal with them.
In February of this year, parts of Turkey and Syria were struck by a devastating earthquake. More than 56,000 people died, many more were injured, lost family members, lost their belongings – the disaster traumatized the people of Turkey.
Help for the victims
In response to the destruction and distress, the Turkish International Freight Forwarders Association, UTIKAD, sent relief goods to the earthquake region – and the Militzer & Münch team assisted. “In this humanitarian effort, we coordinated the transport of urgently needed relief goods carried in twelve trucks plus a complete train of 32 wagons”, says Cem Ulusoy, Managing Director Militzer & Münch Turkey. “In addition, together with the Militzer & Münch branch office in Basel, we donated 5,000 euros to “AHBAP”, a Turkish relief organization.”
The Turkish economy has been severely affected by the natural disaster, too. About 35 percent of the country’s industry are located in the areas affected by the earthquake. Add to this the consequences of the pandemic and global inflation… Militzer & Münch Turkey is suffering from these conditions, too. But the team has learned to operate in an environment characterized by uncertainties, and to carry out business successfully.
Steady development
The Turkish Militzer & Münch subsidiary was founded in 1996. “At that time, we had only seven employees and a single branch in Izmir, run by one person,” says Cem Ulusoy. After the new management of Militzer & Münch Turkey started working in January 2012, the Turkish country unit began to grow. “Today, we employ almost 60 people and, in addition to the Istanbul headquarters, we operate three branches, in Izmir, Mersin, and Bursa, as well as a warehouse in Hadımköy and an office at Istanbul Airport.”
Militzer & Münch Turkey specializes in the transport of industrial goods and is among the market leaders in project transports. Despite the uncertainties and challenges, the team has successfully defended its position in the industry. Road transportation is most in demand among customers, followed by air and sea freight, segments that are also of great importance. The company’s main customers come from the textile, machinery, chemicals, and construction materials industries.
“We have given proof that we are capable of operating successfully not only in times of uncertainty, but also of fulfilling our social responsibility in times of crisis,” says Cem Ulusoy. “An important next step for us will be to invest in a warehouse to provide even better services to our customers and meet the ever-growing demands.”
Militzer & Münch supports the World Food Programme in the fight against famine and delivers food from Tajikistan to regions with vulnerable populations in Afghanistan.
Millions of people in Afghanistan are threatened by hunger. Rising food prices, job cuts and the devaluation of the national currency have led to an increase in the number of vulnerable people in recent years. The World Food Programme (WFP) has been providing nutritional aid to people locally for years, delivering nutrient-enriched and balanced foods to the country. Since 2021, Militzer & Münch has been supporting the humanitarian organization in this endeavor: with food transports from Tajikistan to Afghanistan.
Under the programme, considerable quantities of wheat flour, vegetable oil, and yellow peas are sent on their way every two to three months. In order to cope with the required volume, and to ensure timely and efficient delivery of the goods, Militzer & Münch supplements its own truck fleet to some extent by contracting third-party providers. Thanks to the close cooperation with the sub-contractors, the high quality standards and the specific criteria and guidelines of the WFP can be met at all times.
Effective coordination
Militzer & Münch is also in constant contact with the WFP itself to ensure the smooth coordination of the shipments or to solve problems that might arise, for instance, at the border crossing. Militzer & Münch provided first services to the WFP already in 2018. “In the course of our long-term cooperation, we have built strong and solid relationships with the World Food Programme,” says Aziz Sharipov, Managing Director in Tajikistan. “Our team works closely with WFP representatives and ensures that all necessary protocols are followed. Thus, we are able to meet the organization’s high standards.”
Within only 20 days, Militzer & Münch’s Asia specialists transported power generation equipment, a total weight of almost one hundred tons, from the extreme northeast of China to Tashkent.
Almost 4,500 kilometers lie between Anshan in China and Tashkent in Uzbekistan – as the crow flies. Between May and June 2023, Militzer & Münch covered this distance in the context of a special order: A large number of wooden crates containing transformers, switch cabinets, and other power engineering components had to be picked up from the consignor’s plant in Anshan and delivered to the consignee in Tashkent, a regular customer of M&M Uzbekistan. The journey involved crossing China, Kyrgyzstan and Uzbekistan. This meant two entry procedures – one for Kyrgyzstan and one for Uzbekistan, as well as several days of demurrage for the trucks in Yalama at the border to Uzbekistan. Six trucks carried out the impressive transport in just twenty days.
In total, the cargo weighed 97 tons; its value amounted to 1.2 million US dollars. “It was a challenge,” says Dino Wang, branch manager in Urumqi, China. “At the shipper’s request, the cargo had to be declared as one unit, which meant we had to completely reload the goods into six customs-monitored trucks before we were able to prepare and file the customs declaration.” In Osh, Kyrgyzstan, the cargo was transloaded onto Uzbek trucks. The valuable cargo was insured by the shipper; an escort for the convoy was not required.
Almost 1,700 square meters of additional warehousing space in total – Militzer & Münch Dubai recently took into operation three new logistics facilities in the Jebel Ali Free Zone.
In order to meet constantly rising customer expectations as well as to offer fully integrated and consistently optimized supply chain solutions, expanding capacities was a strategic move. Militzer & Münch Dubai’s business is developing well. Among others, the 37-member team successfully grew its customer portfolio over the past years: while initially, the focus was on transports for the food industry, other industries are now on board, such as the maritime industry as well as the cosmetics and health & fitness sectors.
The capacity expansion features three 566 square meter facilities. One of the warehouses is temperature-controlled and offers 240 pallet spaces to serve existing contract logistics customers. The other two storage facilities, offering a total of 1,300 pallet spaces, are for ship spares in transit, LCL consolidation and cross-dock business.
“Our vision is to offer our medium-sized contract logistics customers high-quality logistics services, and to be able to meet their requirements from a single source,” says Anil Manath, Managing Director Militzer & Münch Dubai. “With this strategic step, we also ensure that we can continue to focus on the development of our cross-dock, LCL consolidation, and ship spare parts activities.”
Stuttgart/Belgrade, October 5, 2023 – In a close collaboration, M&M Germany and M&M Serbia are launching a new joint groupage line. Shipments will be collected at the German M&M Road HUB Stuttgart and will be picked up twice a week by M&M Serbia as per schedule.
In Serbia, Militzer & Münch has an excellent infrastructure, including its own fleet, impressive 36,000 square meters of warehouse space, and dedicated customs agencies for swift and seamless customs clearance. This enables comprehensive distribution within Serbia.
Furthermore, the M&M HUB in Belgrade serves as a central hub for onward transport to the neighboring countries of Montenegro and Bosnia & Herzegovina, providing customers with additional flexibility.
One of the features of this new groupage line is the guarantee of short transit times and a 24-hour distribution service within Serbia. This means that customers will receive their goods even faster and can flexibly adapt to changes in their supply chain needs.
Militzer & Münch Morocco is expanding in Tangier: 2,000 square meters of additional warehouse space are to ensure faster handling.
The port city of Tangier is located at the northern tip of Morocco, close to the Strait of Gibraltar, barely 30 kilometers from the Spanish mainland, and thus at a strategically extremely important position for goods flows. For many years, the Tangier branch office has been Militzer & Münch’s gateway to Morocco.
At this time, Militzer & Münch Morocco is expanding its own warehouse with an annex: 2,000 square meters of additional logistics space will help meet the increasing customer demand and ensure the even faster handling of shipments: “At our location in Tangier, we have been recording steadily growing volumes for years”, explains Olivier Antoniotti, Managing Director of Militzer & Münch Morocco. “With the new warehouse, we can handle the additional transport volume even better and with more flexibility.”
In total, the warehouse area in Tangier will grow to 5,000 square meters. The inauguration and operational start-up of the new facility is scheduled for the beginning of January 2024.
Most of the overland transports from the Militzer & Münch branch office in Eichenzell in Eastern Hesse are bound for one or more of the Maghreb countries. This makes Eichenzell one of the most important hubs for transports to Algeria, Tunisia, and Morocco.
The small township near Fulda and Frankfurt is home to the German Militzer & Münch hub for the Maghreb – and it is continuously developing. Over the last few years, the branch has experienced steady and healthy growth. “We have a clear picture of the direction we want to take in the future,” says branch manager Julian Backenstoß. “We are receiving very positive feedback from our customers for our consistently good service. As a result, we’ve been able to expand our business and also increase our staff.” Close to twenty colleagues are now attending to the needs of customers. The attached warehousing area covers around 4,500 square meters.
Consolidated freight destined for North Africa
On average, eight to ten containers leave Eichenzell every week in a southerly direction to begin their journey to North Africa: four to five semitrailers per week head to Morocco via Algeciras in Spain. Another four to five round trips per week go to Tunisia via Marseille and Genoa. The focus is on consolidated freight.
The trucks need about six to seven days to make the journey to Algeria. Multimodal shipments are completed within nine to ten days. “If time is of the essence, customers prefer the pre-carriage by truck to Marseille. If transit time is not an issue, the combination with rail is a popular choice, also because it is cheaper. The customer can save a few hundred euros and at the same time do something for the environment,” explains Lilli Macholdt, Deputy Branch Manager and Trade Lane Manager Maghreb.
More than just the Maghreb
“We have a lot of experience in organizing and carrying out transports to the Maghreb countries,” explains Julian Backenstoß. “That’s why we keep expanding our activities and recently opened a branch office in Augsburg. There, under the management of Fourat Chetoui, Trade Lane Manager Maghreb, we are currently focusing on the direct freight business to and from the Maghreb. However, we also offer overland transports to many other destinations, of course.” In addition to transports to North Africa, Militzer & Münch also handles groupage transports to Azerbaijan via Eichenzell, as well as transports to Eastern and Western Europe. Moreover, the Eichenzell branch office has been the official CargoLine Germany depot for more than ten years, acting as a hub for classic groupage pre- and on-carriage to and from Europe or within Germany.”
Beijing, June 13, 2023. Xi’an is not only the starting point of the ancient Silk Road on the east end, but also an important gateway for international trade. Meanwhile, Central Asia, as the pioneer of the Belt and Road Initiative, serves as a benchmark for interconnected international trade. Central Asia Railway expands Xi’an’s external communication and trade by creating new opportunities.
On May 30th, 50 TEU with ZTE telecommunications equipment left Xi’an International Port onboard the Chang’an Express for Tashkent, the largest city in Central Asia
M&M China serves as the logistics service provider for this ZTE Central Asia specialized freight train.
The advantages of the Chang’an Express
The Chang’an Express, a new China-Europe connection. The train goes via the Khorgos Dry Port in Xinjiang and covers the total distance of 4,667 kilometers to Tashkent in ten days. This marks the first time that Xi’an International Port has collaborated with ZTE Corporation to launch a full train of goods to Central Asia.
“The reason we chose the China-Europe Chang’an Express is because it offers multiple routes, excellent services, and stable timeliness, which provide strong guarantees for the timely delivery of our clients’ goods. In the future, we will continue to strengthen our cooperation with Xi’an International Port Free Trade Zone and contribute to the construction of the Belt and Road Initiative,” said Elyar Sherkati, the Managing Director of M&M China, during an interview.
Dobanovci, Serbia. “Our goal is the region, and with Bosnia-Herzegovina and Montenegro as our first step, we have embarked on our strategic expansion course,” says M&M Serbia’s Executive Director Nikola Vasiljevic. “Plans are to extend our brand to other neighboring countries.”
M&M Bosnia-Herzegovina and M&M Montenegro were both founded in the summer of 2021. “Bosnia Herzegovina is a growing market with significant potential. Montenegro is the smaller market, but not less important to the M&M Serbia network,” says Nikola Vasiljevic, who heads the new country units. At this time, both M&M Bosnia Herzegovina and M&M Montenegro have a staff of three; road transportation is the main business, but warehousing and customs clearance are offered, too. The first full business year is behind the two companies, and we wanted to know how they developed.
Challenges and lessons
“For both markets, the past two years were quite challenging for and highly unpredictable, but despite the challenges, we were able to adapt and contribute to the growth of the local logistics and transportation markets,” says Nikola Vasiljevic, who heads the two new units. “Our unique and personalized approach to each client has allowed us to assess the market and our capacities accurately, elevating service to a new level and finding the best solution for every inquiry. Most of the clients we work with in Montenegro and Bosnia Herzegovina are clients with whom we have had long-standing partnerships in Serbia. The focus is on import.”
“Were there any positive or negative surprises in the development of either company,” we ask.
“For a large corporation like ours, surprises, both positive and negative, are an integral part of business. The expertise of our staff is extremely important, as well as their approach to any particular situation. On a daily basis, we face challenges and strive to extract the maximum benefit from them. To us, negative situations are lessons that we can leverage as advantages in the future.”
Militzer & Münch has been present on the Romanian logistics market for almost 20 years with its own country unit. The focus is on imports and exports within Europe, with customers mainly from the industrial goods and clothing sectors. Despite current uncertainty factors, the subsidiary not only proves to be stable, but it can even report growth.
At the Romanian subsidiary, all signs point to expansion. And this although market conditions are currently rather challenging. The ongoing war in neighboring Ukraine, the energy crisis, and high inflation are creating uncertainty on the market and hardly allow any forecasts.
Teamwork to defy challenges
According to Managing Director Valentin Dragu, the fact that Militzer & Münch Romania is nevertheless so well positioned on the market is mainly due to the high degree of motivation and hard work of his team. “The logistics industry is very dynamic; you have to act flexibly and to be able to react to current market changes. I am very proud to say that we accomplish this even in difficult phases. As a medium-sized transport service provider, we are holding our own very well against the competition, and we are therefore generally optimistic about the future,” he says.
New location, new employees: for the roughly 30 employees of Militzer & Münch Romania, a move was due last fall; the M&M Romania team relocated to new, modern premises in downtown Bucharest. “Our current team members are happy with the new offices and the location’s very good transport connections, but hopefully also new team members in the future will appreciate this, as we are currently looking for reinforcement”, says Valentin Dragu.
Upswing in road and sea transport
So far this year, the current geopolitical and economic situation has had hardly any impact on Militzer & Münch Romania’s activities and results. The country unit recorded a slight decline in project business, though, the volume of road transports, however, increased, and in the sea freight sector, an upswing is noticeable, too.
Nevertheless, Valentin Dragu plans to focus Militzer & Münch Romania on transports that have proven successful for his company: “We expect trade within Europe to intensify next year, which will open up many opportunities for us. Therefore, we are now working on further expanding our transport business and trade relations in this direction – and hopefully soon with the vigorous support of new team members!”
There is probably no other sector that imposes such high demands on the handling of goods as the pharmaceutical sector. Drugs and other medical products are particularly sensitive; even the smallest temperature fluctuation can impair their effectiveness and shelf life. The highest levels of quality, hygiene and safety are therefore crucial when handling pharmaceutical products – and logistics service providers who want to operate in the pharmaceutical sector have to prove that they meet the required EU standards as part of their GDP (Good Distribution Practices) certification.
Militzer & Münch Germany committed to achieving GDP certification in 2021 – with success: Last year, the country organization attained the certificate, with Charlotte Dürr, Group Project Manager Pharmaceuticals at Militzer & Münch, the leading force. We talked to her about the importance of the certification for the logistics provider, what opportunities it opens up, and about her personal passion for and further plans in the field of pharmaceutical logistics.
Eva-Charlotte Dürr
Ms. Dürr, the GDP certification is an important milestone for Militzer & Münch Germany. Would you please describe what this means for the national subsidiary and also for you personally?
First of all, one has to state that the certification process is very demanding and extensive. The hardest part was to create a basic framework of documentation and standards that covers all areas of the EU GDP directive. In addition, our carriers need to be thoroughly checked and assessed for their quality and compliance with the guidelines on their part.
With our quality system, we can ensure the responsible and competent handling of the sensitive goods – be it from Munich to Nairobi or from Berlin to Ulaanbaatar. This helps us now to continuously certify further locations of the group, as with the successful GDP certification of Militzer & Münch Germany, we have also aroused interest in other country units. As a result, we have a great working group of local GDP managers, sales experts, and quality managers. In Poland, we successfully passed the certification audit in March; in Georgia, we are currently planning the first audit.
Many country organizations already have experience in the various product categories and see great growth potential, especially in Southeastern Europe and Central Asia. The healthcare sector is of great importance for the entire Militzer & Münch Group, and developing this product opens up a whole range of new opportunities for us.
What exactly are the new opportunities for Militzer & Münch Germany that result from the certification?
Worldwide, the healthcare market is booming, and Germany is one of the market leaders. As a GDP-certified logistics service provider, we can now participate in this sector to a wholly different extent, open up new markets, and address a larger clientele.
The first sales initiatives we launched after successful certification showed quick results: We received many requests for quotations both for full truck loads by road, including numerous shipments to Central Asia and as far as Mongolia, and by sea and air to various destinations in Africa, the Middle East, and Southeast Asia, as well as for imports from America. Within the Militzer & Münch Group, M&M air sea cargo GmbH is responsible for GDP compliant transports by air and sea freight, as well as by rail.
Moreover, we can support the medical supply of many war and crisis areas while maintaining quality standards. There is also great interest in refrigerated transports by rail. Here, we benefit above all from an increased interest in reducing emissions.
Can you give us some examples of projects that Militzer & Münch Germany is already handling in the pharmaceutical sector?
At this time, we are handling transports of pharmaceuticals and medical equipment to Africa, Asia, and Europe, as well as shipments within Europe. In addition, we have imports of raw materials, accessories and medical cannabis. The high level of customer demand indicates that certification was exactly the right step to take. We are convinced that it will enable us to significantly expand our activities in the field of pharmaceutical logistics, and we are looking forward to intensifying our cooperation with other Militzer & Münch country units in cross-border transports of pharmaceuticals and medical devices.
With your dedication and commitment, you have been instrumental in driving the pharma project forward. Where does your enthusiasm for this area in particular come from?
After my qualification as a forwarding specialist and subsequent studies in International Transport Management and Marketing, I started at Militzer & Münch in 2018, initially as Sales Coordinator, but then took over product responsibility for Aviation Logistics. With the onset of the pandemic, I was looking for a new task and started to develop the Pharma Logistics division – a decision I have not regretted to this day! The products with their specific requirements and transport conditions are certainly a challenge, but the market is absolutely viable, and working in this field is a journey of discovery for me every day, due to the wide variety of products and customers. And by the way, I have probably always had a penchant for special products: in my bachelor thesis, I devised a strategic market analysis for the transport of horses by air.
What are your plans for the future?
We want to further expand our pharmaceutical logistics network so we can offer our customers worldwide the best possible service and products. Where this is not feasible via our own Militzer & Münch network, we cooperate with local partners who, of course, have to meet our requirements and also the GDP standards. The search for such partners, which is not easy in every country, is currently one of our most important tasks.
We want to further expand our pharmaceutical logistics network so we can offer our customers worldwide the best possible service and products. Where this is not feasible via our own Militzer & Münch network, we cooperate with local partners who, of course, have to meet our requirements and GDP standards as well. The search for such partners, which is not easy in every country, is currently one of our most important tasks.
We generally see great potential in pharmaceutical shipments to Central Asia, as well as to Southeastern Europe and Africa. In Central Asia and Southeastern Europe, we are already operating our own organization in almost every country. And in East and West Africa, for example, we have just successfully found reliable partners. For our activities in the region, I benefit from participating in the Militzer & Münch Talent Development Programme in 2022: As an international team, we had the opportunity to analyze new markets – and with Africa, the focus was on a market that is now emerging as one of our core markets for pharmaceutical transports.
In December 2020, M&M Militzer & Münch Malaysia was founded. You could say: at the worst possible time. But the challenges of the pandemic did not dissuade the country unit from its ambitious plans and goals. Gopal Krishnan helped to set up the company and fought relentlessly for its success right from the start. We talked to him about the difficult initial phase and the subsequent development of Militzer & Münch Malaysia, about current projects and plans, and his wishes for the future.
Mr. Krishnan, can you describe your organization in a few words?
Militzer & Münch Malaysia is small, but extremely customer-oriented and by now very successful. Although we specialize in projects in the oil and gas sector, we are basically the right partner for any kind of transport.
Due to corona, success was late in coming. How did you experience the start-up phase?
Everything turned out quite differently than we had imagined. The start of our national company fell at a time that you would never choose voluntarily. Normal procedures that are part and parcel of setting up a company, such as opening a bank account, turned out to be a major hurdle. Everything took much longer than planned and demanded lots of dedication and patience from us. That we were still unknown in the market additionally complicated the situation, of course. For many customers, it was simply not the right time to try out a new forwarder. It was only about half a year after the actual founding that we were able to start operations.
This difficult time, how did it shape Militzer & Münch Malaysia, how did it shape you?
Our difficult start has certainly made us who we are today. Even though it was a tour de force, we were able to benefit a lot from the experience. We worked in a very disciplined and determined way, consistently keeping our costs at the lowest possible level, and going to great lengths to win orders. Our perseverance ultimately paid off: we were able to expand our network one step at a time and achieved growth.
One thing that should definitely be emphasized positively here is the support we had from the Militzer & Münch management. There was always a willing ear and a lot of understanding for all our concerns. To us, this proved that we have a reliable partner at our side, even in difficult times.
How did matters develop for Militzer & Münch Malaysia after this very bumpy start?
After the country had almost come to a standstill due to corona, there was a strong upswing from 2022 on, both on the national and the international market. Economy flourished, investments were promoted also on the part of politics, and global demand increased. Thus, for instance, global demand for rubber grew, among other things for the production of rubber gloves. As natural rubber is one of Malaysia’s important natural resources, there was enormous demand on the export market.
Militzer & Münch Malaysia also registered significant growth at this time, we gained new customers, and were able to generate a very good result for 2022, among others, due to a significant order for international project transports in the oil and gas industry. The new year also started very well for us and we are confident that we will be able to continue expanding our business successfully in 2023.
What projects and plans are currently in the pipeline at Militzer & Münch Malaysia?
With some projects, it is too early to say, but what I can say is that we will continue to expand our customer relationships in the oil and gas sector. Our core competence is handling project shipments – we want to keep leveraging this strength and position ourselves as a specialist in the Malaysian market.
And what is your wish for the future of Militzer & Münch Malaysia?
Apart from these plans regarding our projects and orders, my personal goal is to establish Militzer & Münch Malaysia as a successful brand that is not only distinguished by high performance and reliability, but equally lives values such as loyalty, integrity, and respect. We want to be an attractive and reliable employer that promotes the careers of young employees and stands for team spirit. I believe that it is ultimately these qualities that make up the “DNA” of a company, leading to success and securing the company’s future in the long term.
Militzer & Münch Malaysia:
The corona pandemic initially thwarted the ambitious plans of the newly founded country unit M&M Militzer & Münch Malaysia, but the team showed perseverance and gained a strong position in the logistics market (see interview). The most important facts about Militzer & Münch Malaysia at a glance:
10 employees make up the Militzer & Münch Malaysia team around Managing Director Gopal Krishnan, who has been heading the country unit since its foundation in late 2020.
The oil and gas sector is the most important industry for Militzer & Münch Yet there are also customers from the furniture, food, high-tech and industrial goods sectors, as well as from the health care industry.
China is the most important trade partner, followed by Singapore, the USA, Japan and Taiwan.
At 70 percent, Militzer & Münch Malaysia handles most of its regular imports and exports by sea. The goods reaching Malaysia come from South Africa, Australia, Italy, and Germany.
International shipping companies call at three ports in Malaysia: at Port Kelang, Malaysia’s largest seaport southwest of Kuala Lumpur, and at the ports of Tanjung Pelepas and Pasir Gudang, both located in the south of the country near the border to Singapore.
Transit times for Militzer & Münch Malaysia shipments range from 6 days (India, Sri Lanka), and 25 to 31 days (Australia/New Zealand), to 42 to 46 days (Europe). Transpacific goods take more than 50 days to arrive at their destination.
Militzer & Münch Malaysia has a special relationship with Germany. The company is a member of the German-Malaysian Chamber of Commerce, and cooperates closely with M&M Germany on the local market to further intensify trade activities.
Where Militzer & Münch does not have its own local subsidiaries, Militzer & Münch Malaysia relies on a network of partners to serve its local customers, for example in Australia, Singapore, or South Africa.
M&M Militzer & Münch Serbia is now one of the few Serbian forwarders with AEO status (“Authorized Economic Operator”). It certifies that the Serbian Militzer & Münch subsidiary complies with high standards and offers numerous advantages in goods traffic and customs clearance.
Extensive audits are carried out as part of the AEO certification. Numerous verifications have to be provided, such as regarding the company’s balance sheet and solvency, compliance with customs regulations and international security standards, as well as risk management. Thus, the certification phase was highly labor- and time-intensive for Quality Manager Nadja Novitovic, who guided M&M Militzer & Münch Serbia through the six months process.
“As yet, there are not many transport companies in Serbia that have achieved AEO status. The fact that we are now among the few in the country to have successfully completed this certification makes us very happy, because it strengthens our trade relations and the trust of our customers and partners”, says Nadja Novitovic.
Faster and less complicated thanks to AEO
Once a company has been granted AEO status, it means, above all, that customs and transport processing of goods is quick and uncomplicated, because certified companies are considered to be particularly low-risk and reliable. Accordingly, their shipments are given preferential treatment, there are fewer goods inspections, and documentation requirements are lower. The reduced amount of administrative work speeds up processes in the supply chain, and companies can act more efficiently.
Strong customer relationships with the EU
The certification process is time-consuming, but the commitment has definitely paid off for M&M Militzer & Münch Serbia. AEO status is particularly beneficial in terms of business relations with the EU. “Most of our customers are located in EU countries, mostly from Germany. There, we benefit from reduced customs duties and taxes due to our AEO certification. We also gain faster access to support programs that facilitate the goods flow within the EU, as well as to the EU internal market and the European Customs Union,” says Nadja Novitovic. “Both our country unit and our customers profit from our Authorized Economic Operator status in many ways. It will be of great advantage to us as we continue expanding our activities.”
AEO status was introduced in the wake of the terrorist attacks of 11 September 2001 with the aim of making international supply chains more secure. Since 2008, EU-based companies have been able to apply for AEO status with their respective customs office. In Serbia, Authorized Economic Operator status – referred to here as OPS status (Serbian: “Ovlašćeni Privredni Subjekt”) – was introduced in 2014 to simplify and modernize customs procedures.
Since it was founded in 2018, Militzer & Münch Sri Lanka has seen positive development, while also facing major challenges again and again. The team looks to the future with confidence.
Located on the west coast, the port of Colombo is Sri Lanka’s biggest container port; it is considered one of the most important logistics hubs in the region. Almost 6.9 million TEUs were handled here in 2020. Militzer & Münch Sri Lanka has its headquarters in the direct vicinity of the port. Benefiting from this central location, the Militzer & Münch country unit has successfully established itself in Sri Lanka’s logistics market over the past years. Today, it is a member of the Sri Lanka Logistics & Freight Forwarders Association (SLFFA), the association of forwarders and logistics providers.
Good results despite difficult conditions
For the year 2022, the twelve-person team again records good results. This is not to be taken for granted: beside the Corona pandemic, most recently, the ongoing economic crisis and its political consequences also affected the activities of Militzer & Münch Sri Lanka. Fuel shortages, bottlenecks in the power supply, and skyrocketing transport costs burdened the country’s logistics sector; many factories were forced to close.
“Of course, we are glad we can look back on a good year in Sri Lanka despite such adverse circumstances,” says Dilum Stembo, Managing Director of M&M Sri Lanka. “We are aware, however, that there are still challenging times ahead. We are constantly adapting to the changing circumstances so we can continue providing stable services to our customers.”
Focus on export business
In response to tighter import restrictions, Militzer & Münch Sri Lanka changed its strategy and focused on the export business. The main export goods include tea, rubber, and coconut, as well as products of the apparel industry. By concentrating on these exports, Militzer & Münch Sri Lanka was able to minimize the impact of the dollar crisis on its own activities, as exporters pay in US dollars, and shipping companies invoice in US dollars, too.
In order to reduce power consumption, electricity cuts of several hours a day can occur in Sri Lanka. To avoid a standstill of day-to-day operations during such long supply interruptions, the country unit invested in solar cells for its offices to reduce its dependence on the power grid.
These are challenging times for the country’s economy, but of course equally so for local people. “We are deeply committed to helping here,” says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “In view of the high inflation, we are accommodating our employees financially.” Dilum Stembo confirms: “Not only the company as a whole but also the staff had to overcome many obstacles. We took efforts to support our staff – also emotionally. I am convinced that it has helped them at least to some degree”
Given the current situation, the course taken has proved successful for Militzer & Münch Sri Lanka, and the country unit has been able to maintain its stability. Says Andreas Löwenstein: “We plan to increase our activities to and from New Zealand, Australia, and Southeast Asia, as well as to and from the USA and Canada. We are confident we will cope well with future challenges.”
The Militzer & Münch subsidiary in Tunisia was founded over 25 years ago. Today, about 100 employees work for M&M Militzer & Münch Tunisia. Their core business: road transports from and to France, Italy, and Germany.
Militzer & Münch Tunisia has its headquarters in the port city of Radès, just a few kilometers southeast of Tunis, the capital. Additional branches operate in the port cities of Sousse and Sfax, as well as at Tunis-Carthage International Airport. Air and sea transports are an integral part of the product portfolio, but the Tunisian country unit’s biggest demand is for road transports; with the customers mainly coming from the textile, automotive, raw materials, and manufacturing industries.
An expert for Tunisia’s logistics market
Saber Boussada has been Managing Director at Militzer & Münch Tunisia for almost three years; he is at home in the transport industry. He had previously held various positions at an international freight forwarding company for more than 15 years, and has been Managing Director for more than ten years now. During this time, Saber Boussada got to know the Tunisian market very well: “Tunisia is a small country, and there’s a lot of competition among logistics service providers. In our day-to-day work, we are repeatedly confronted with the intense competition in the market here, and it depends on our performance and our range of services whether we can hold our ground,” he says.
Under his leadership, the country unit has in fact been able to hold its ground very successfully so far: Militzer & Münch Tunisia has achieved a significant profit increase since he joined the company, and the team is very optimistic about the further development of Militzer & Münch Tunisia.
Passionate about logistics
“What unites all Militzer & Münch employees is the enthusiasm for fulfilling customer wishes and demands with tailor-made solutions. Delivering goods to their destinations across the widest range of distances and on international routes is our passion”, is how Saber Boussada sums it all up. “Militzer & Münch Tunisia has secured a strong position in this challenging market. I am proud of this commitment, and I am happy to be part of the Militzer & Münch family!”
Despite the fraught economic and geopolitical situation in 2022, the Militzer & Münch country in Turkey was able to close the year successfully – and the company has ambitious plans for the future.
In 2022, the Militzer & Münch team in Turkey demonstrated that difficult times also offer opportunities. The country unit had to cope with challenges such as the aftermath of the Corona pandemic, increased freight costs, and supply chain bottlenecks. Added to these were the negative development of the Turkish economy, which led to major trade imbalances, and the situation in Ukraine.
Yet the team took the right measures in time. “Thanks to our strong position in Turkey, it was easy for us to adapt to the requirements, thus turning disadvantages into opportunities,” says Ender Atat, Deputy Managing Director at Militzer & Münch Turkey. Alex Sandalcidis, Deputy Managing Director at Militzer & Münch Turkey, adds: “We defined new strategies and introduced new structures on different routes and with different transport modes so that we were able to still meet customer requirements
Militzer & Münch Turkey transports a variety of commodities, including textiles, automotive products, industrial goods, oil and gas equipment, and chemical products. Road haulage accounts for the largest percentage among the transport modes – but sea and air transports are also developing well. Thus, a few months ago, the team restructured the sea freight department in Istanbul in response to increasing requests from customers and partners. Combining carriers is becoming increasingly important, and the staff’s expertise in intermodal and multimodal solutions offers significant benefits to customers.
“Logistics is a people business, and that’s why we have started to invest more in people,” says Cem Ulusoy, Managing Director at Militzer & Münch Turkey. “Our plans for the future include personnel expansion, the reinforcement of our sales and marketing departments, more investment in overseas sales activities, and further steps to strengthen our role in intermodal and multimodal transports.
” Plans are also in place to further expand the project logistics segment and to cooperate even more intensively with the Militzer & Münch Group and overseas agents as well as with partners in those countries where Militzer & Münch is not represented.
The company will also continue investing in digitalization and, in 2023, launch a new IT-based system that will offer more transparency in planning future projects.
Whether capacities, energy prices or personnel costs: for the airfreight industry, the Corona pandemic was not without consequences. At present, it is still virtually impossible to make any long-term plans. In times of uncertainty, however, there are also some constants – like Frankfurt Airport, which has maintained its strong position as a major cargo hub in Central Europe for many companies. Including for Militzer & Münch.
M&M air sea cargo GmbH has an office directly at Cargo City South, Frankfurt Airport, where 15 employees work to serve customers; and the service goes far beyond standard freight: the team primarily handles dangerous goods shipments, valuable cargo and GDP (Good Distribution Practice) compliant transports for pharmaceuticals, which are subject to specific requirements, for instance with regard to refrigeration.
Santino Hormuth has been working in the logistics industry for 15 years and has been managing the branch of M&M air sea cargo GmbH at Frankfurt Airport for just over a year. Transports according to GDP guidelines have characterized his work from the very beginning, as immediately after he joined the company, certifications in the GDP area were already taking place. “That was rather challenging for me – after all, I was familiarizing myself with the internal structures, the work processes, and my colleagues at the same time,” he recounts. “Not least thanks to the excellent cooperation on the team, we passed the certifications successfully and have since been working on boosting GDP transports as a product in our portfolio and expanding our customer base in this area.”
Special, in many ways
In 2021, the air freight volume at Frankfurt Airport was around 2.3 million tons, the highest amount of cargo handled at any German airport. Europe-wide, Frankfurt Airport is one of the ten largest airports.
Santino Hormuth appreciates his workplace and is aware of its importance: “Frankfurt Airport is a magnet for companies, an important location for science and education, and one of the biggest workplaces in Germany. It is also the Lufthansa home base and the leading cargo hub in Europe. This gives the airport a very special position also for Militzer & Münch,” he explains. “Moreover, our location directly at the airport is definitely of competitive advantage for us: we are virtually in the middle of the action, and can act fast.”
Speed is the order of the day
Speed plays a crucial role in the handling of air freight projects. In most cases, orders are urgent and need to be handled efficiently and swiftly. In this respect, Militzer & Münch benefits from its decades of experience and presence on the market, as well as from well-practiced teams. This allows for short decision-making paths with a minimum of bureaucracy – and that way, even particularly urgent transports become routine tasks. Santino Hormuth’s team regularly handles just-in-time shipments for automotive suppliers, transports engines and other parts for the air freight industry, and was recently responsible for the transport of equipment for the World Cup in Qatar from Frankfurt to Doha.
Santino Hormuth’s goal for 2023 is to further increase Militzer & Münch’s freight volume at Frankfurt Airport, the number of key accounts, and of existing customers. To this end, among other things, there are plans to restructure the sales department.
“We are still facing tense times. But in my year so far with Militzer & Münch, I have experienced how informal and at the same time professional the cooperation is here at the Frankfurt site and across all branches. Therefore, I am sure that we will successfully master this phase.”
As the Christmas holidays are drawing near, we wish you joyful, restful days among family and friends.
We would like to take the occasion to express our thanks to you for the good cooperation in 2022.
For the challenges of the upcoming year, we wish you good luck, success, health and personal contentment.
