India’s potential is enormous. One of the main reasons we’re investing here with a generational perspective is the government’s transparent plan to invest USD$970 billion in infrastructure, including inland waterways, by 2047. Our experience in India has shown us that what is said is done, says” Tobias Martin Bartz, CEO, Rhenus Group.
CT Bureau
How do you see the logistics industry evolving after the pandemic?
We have never witnessed an event as significant as Covid-19, which impacted businesses globally. We were in choppy waters at that time, but we have recovered. However, due to ongoing crises, the world has become more unstable. Conflicts, such as those in the Middle East and between Ukraine and Russia, are challenging supply chains. We have been using technology and a mix of asset-light and asset-heavy models to bring stability to our clients’ trade lanes, which I believe sets us apart from our competitors.
What are the recent advancements and investments done in air cargo and logistics sectors? How is your business shaping up?
Our business is shaping up well. We are growing double digits every single year. We were affected in 2020 from the pandemic but now we have recovered strongly. Our recent investments have been primarily in company assets. We have ordered four new hydrogen barges and expanded our presence with warehouses at airport sites and within ports. In Europe, we have established 70 own ports and now operate more than 1,000 barges. In the air and ocean sectors, we have grown to manage 650,000 TEUs of single count control and approximately 150,000 MT of air freight.
How do you look at India as a trade and investment destination? Any plans to expand your
network here?
We have been operating a joint venture in India for 14 years now and have experienced tremendous growth. We have a family-like joint venture and have grown from no square meters to a warehouse capacity of 2.4 million square feet globally. We manage 70 sites across India, employ more than 2,000 staff, and operate in road freight, air, ocean, and customs clearance. Following the recent announcement by India’s Prime Minister, we are now positioned to bring 90,000 skilled Indian workers to Germany on work visas, up from the previous limit of 20,000. To support this expansion, we will establish a training academy for our seafarers, as we operate 1,000 barges requiring crew members. We will train them here (in Germany) and bring them back, and also place 10 barges for a start on the Waterway 1 & 2 in India. We are moving towards an asset-heavy business model.
What measures are taken at Rhenus Logistics to support sustainability and reduce carbon footprints?
Barging is the most CO2-friendly way of transporting bulk cargo. With one ship, with one diesel engine, we can transport in our river barges up to 5,000 tons. By moving away from trucks towards barges for the right cargo, there’s a use for trucks, we have many trucks as well, but moving and shifting it onto the rivers will save you CO2 like in almost no other mode. It’s our job to be efficient. Our efficiency saves the world CO2, which means very few empty legs, high usage of containers, and again, using all modes of transport.
How crucial is the adoption of technology like AI, machine learning, IoT, internet of things, and logistics operations?
Very crucial, and again, since we program our own transport management software, we of course are using the latest advancements. One of them is to analyse the things we do – to improve, and not to replace our staff. We try to make the life of our staff easier, and all of these things make their workload easier and allow them to absorb even more responsibilities.
What sort of facilities are available at Rhenus Logistics to handle different types of cargo, like pharmaceuticals or perishables?
We have specialized warehouse locations in India for dangerous goods and pharmaceuticals, along with facilities for other products such as electronics, automobiles, and retail items. We operate a specialized fleet of trucks for transporting oil and lubricants, adhering to the highest certification standards. Compliance is crucial, and we use the latest equipment. We transport pharmaceuticals, automotive products, and more via air, ocean, and road. We also manufacture automotive products. Our next plan after the barging would be to go into the Indian market to join the OEMs to produce here, because we also take part of the supply chain, of the value-add away from the OEMs, and do it for them.
Any crucial challenges you come across while operating in the Indian market?
One key challenge is bridging the intercultural gap, and we’ve found that trust is the best way to address this. We rely heavily on local management—this isn’t unique to India; it’s our approach worldwide. In Spain, for instance, we have a Spanish CEO, in Germany, a German CEO, and in India, it’s someone from India who understands the local market andclients’ needs. Even though it’s a large, global company, the local needs are
still there.
How do you see India’s growth to become a top player in the logistics sector, globally?
India’s potential is enormous. One of the main reasons we’re investing here with a generational perspective is the government’s transparent plan to invest USD$970 billion in infrastructure, including inland waterways, by 2047. Our experience in India has shown us that what is said is done.
