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THE TOP 40 3PLs 2009

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Panalpina World Transport (Holding) Ltd.

Basel, Switzerland
SWX: PWTN
In the U.S.
Panalpina Inc.
Morristown, NJ
Lucas Kuehner, Managing Director USA
973-683-9000
www.panalpina.com

3PL Turnover:

$3b Americas ($9.9b Global)

Service Area:

Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets:

14,804 employees
242 warehouses

Information Systems:

Excellent Emphasis is on Internet native SCM

Services:

Air and ocean freight forwarding, supply chain management

Industry Focus/Key Customers:

Automotive, healthcare, hi-tech, oil and gas, retail/fashion, telecommunications

Armani, Celestica, Chevron, Gucci, Hewlett-Packard, Hyundai, Philips Consumer Electronics, Telus Communications

Armstrong & Associates’ Evaluation:

Panalpina is a Top 10 freight forwarder. It is the third largest in air freight and fourth largest in ocean freight. It handles 1,278,000 TEUs per year (a 3.6% increase from last year), 901,000 tonnes of air freight (a 4.9% decrease from last year), and about 1 million tons of noncontainerized break bulk cargo. It has 242 sub-contracted warehouses in 150 countries and is consistently profitable. The life blood of Panalpina is its ongoing financial stability and transparency. Its gross profit runs 20%; EBITDAs (earnings before interest, tax, depreciation and amortization), EBITs and net incomes consistently run among the industry’s best. Like all of the truly strong players, these results are clearly and straightforwardly reported for each financial period. Gross profit (net revenue) runs 43% for air freight, 31% for ocean freight and 26% for SCM. Panalpina concentrates on six verticals: automotive, healthcare, high-tech, oil and gas, retail/fashion, and telecommunications. Telecom growth was major in 2007. The oil and gas operations are primarily in project logistics, which account for 10-15% of Panalpina’s revenues.

Panalpina USA sees many good things on the horizon

Lucas Kuehner GOOD THINGS ARE ON THE RISE at Panalpina USA with awards, innovations and expansions.

Panalpina was recently presented the 2009 International Carrier of the Year award from CHEP, a global leader in pallet and container pooling services. CHEP awarded Panalpina in recognition of our outstanding dedication, service and performance — proof that our passion for solutions and product innovations contribute to the success of our customers’ businesses.

Panalpina recognizes the strategic importance of employee engagement to customer loyalty and customer satisfaction. To that end, Panalpina conducted an Employee Engagement Survey this summer and concluded that our employees’ level of engagement beats any industry benchmark. We are very proud that Panalpina’s men and women are committed to continuously finding ways to improve and exceed our customers’ expectations. Panalpina is investing in the future with the implementation of its “PanGreen” program, designed to ensure that our business activities are sensitive to how we are impacting the environment. In order to meet the targets, local eco-consumption and eco-transport programs are being implemented. Aligned with ISO 14001 requirements, the program establishes clear guidelines for health, safety, and environmental goals. This will serve both the environment, and deliver benefits to our customers looking to improve their eco-balance now and in the future.

As part of our commitment to deliver unmatched service to our customers, we have great plans for 2010. This includes further expansion of our cross-border facilities in McAllen and Laredo, Texas, as well as our Los Angeles and Huntsville gateways. In addition, customers from the healthcare industry will benefit from the recent inauguration of our cooling facility in Huntsville, Ala., to enable a seamless door-to-door cool chain with European destinations. And, in order to meet customer demands, we will soon be handling temperature-controlled cargo in San Juan, Puerto Rico.

Next fall we will reach a major milestone as we celebrate the 20th anniversary of our own flight operation between the United States, Europe and Mexico, which offers five frequencies per week. As we can flexibly manage the flight schedules according to customer demands, this unique service enjoys great support among our customer base across multiple industry verticals.

With the help of our highly engaged workforce and its commitment to what we value the most — continuous quality improvement — we look forward to serving our customers today and in the future.

Lucas Kuehner
Managing Director USA
Panalpina, Inc.



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