Still challenging to the new markets?

Still challenging to the new markets?
Over half million vehicles of Hyundai and Kia handled in BLG auto terminals

Young Il Hahn

[CLO] BLG group's total sales revenue surpass one billion Euros for the first time in 2011 Can you imagine 73 year old Korean man driving Harley Davidson and Porsche convertible? It still looks peculiar to people in the Far Eastern country.

Mr. Yang Whan Choi is the one we can rarely discover in a long time Confucian cultured nation. He has involved in German BLG Logistics Group, of which 51% of shares are owned by Bremen state government, for the past 2 decades and is now in a position of representative of Korea.

I wondered how he could keep that position as ever at his age. The answer easily came up. He took the latest style smart phone out of his jacket and transmitted a picture of himself dressed in sky-blue shirts and jeans posing as a rider beside Harley Davidson. It was hard to guess his age only with figure.

In the summer of 2007, Mr.Choi got the motorbike license to ride heavyweight American motorcycle and it took only a month to get it. The key to success certainly resides in his 'Passion and Challenge' to seek new culture, flow and technology.

Mr.Choi told me one episode of crossing Chinese continent with another 6 motorbike riders 8 years ago. Perhaps he was motivated by the experience of car racing he participated in while studying at German college.

"I really admired Porsche in my early age. Whenever getting money, I saved it without fail. If you keep getting interested in sports cars, you may be able to find out how to get them in a good price. Likewise, you could find the way to succeed in business as well provided you put your plan into practice bit by bit." Mr.Choi expressed his opinion.

Would there be any strong tie between his hobby and profession? BLG Logistic Group, where he has been in for a long time, has a specialized division particularly in automobile section named BLG Automobile Logistics. The percentage of automotive business in whole BLG Logistics Group is around 35%.

The division offers logistics service for finished vehicles and ro-ro cargo. The network for automobile logistics consists of 20 auto-terminals in seaports and in the hinterland and all terminals are equipped with PDI(Pre-Delivery Inspections) and technical centres.

The network links Bermerhaven, where you can find the biggest auto-terminals in the world, with major seaports and inland points of every Europe including Eastern Europe and Russia via intermodal transport services by truck, rail and barges. In 2011 an entire volume of 6 million vehicles was handled in the whole network.

You can find Hyundai and Kia motors among major car manufacturing customers of BLG Automobile Logistics.

Mr.Choi explained "Hyundai and Kia vehicles handled in all terminals in the network of BLG Automobile Logistics recorded 503,500 units(Hyundai 251,200 and Kia 252,300) in 2011. That takes up around 9% in total volume. BLG has also been in good co-operation with Hyundai Glovis, a dedicated logistics provider for Hyundai and Kia Motors. "

He continued "BLG developed its own specific logistics system enabling German car dealers to check the status of inbound Japanese cars still on board and sell them in advance through satellite system. It is a typical case of upgrading shipper's supply chain management by lowering in-stock rate."

BLG, formerly known as Bremen Warehouse Company, was founded in 1877 by the merchants to manage their warehouse capacities and to bundle together the handling of sea cargo.

The company changed the name to BLG Logistics Group in 1998 to expand its business boundaries as an international logistics service provider. The group achieved a total sales revenue of over one billion Euros for the first time in 2011. The previous year's record was 897.4million Euros.

Container logistics is also one of the main divisions of BLG group. It has been developed by the EUROGATE joint venture, Europe’s leading terminal operator based on the continental terminal plan and the addition of container transport services. The network includes transport by rail, road and water, as well as logistics services for containerised goods.

BLG's container terminal network covers from German ports of Bremerhaven, Hamburg to Lisbon, Gioia Tauro, La Spezi of southern Europe and even up to Tangier of Morocco in North Africa.

Mr.Choi added "You will see the Wilhelmshaven EUROGATE container terminal open this year. In 2011, 13.3 million containers (TEU) were handled in the terminal network. The container volume handled at Bremerhaven terminals was 5.9 million TEUs. Bermerhaven is truly a mega hub port allowing 15,000 TEU class container ship to call."

He also gave a description of BLG's solution capabilities particularly concentrated on the main discipline of industrial and production logistics, as well as seaport logistics.

"Korea and BLG has had deep connection in solution areas. Several years ago, BLG's contract logistics division provided consulting service in regards to designating Free Trade Zone near Mokpo New Port located in southern Korea. BLG co-worked with Korea Industrial Development Institute that time." explained Mr.Choi.

He further commented "BLG is running a terminal operation company in Tianjin, northern China jointly invested by Chinese government in a ratio of 50:50. I feel really motivated whenever I see BLG's continuous challenge to the new markets. Perhaps that is why I have been able to be with BLG for a long time."

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