Partnership Without Limits
GEFCO keeps Partner, unlimited promise during COVID-19
In March, despite a promising start of the year, GEFCO was negatively impacted by the closure of many customers’ factories around the world, first in China and then in Europe and around the world. With a strong heritage and expertise in finished vehicle logistics, GEFCO experienced lower volumes in this business segment but an increase customer demand for our time critical air, rail and road solutions.
With a higher demand for time critical solutions, GEFCO carried out many important assignments for customers in the automotive, consumer goods and medical sectors, with urgent requests to transport spare parts, electronics and medical equipment from China to Europe.
GEFCO continued to leverage its expertise in automotive logistics, helping customers, including our historical client Groupe PSA, find solutions to achieve their objectives, especially in spare parts distribution. Governments’ incentives to support the automotive industry and to accelerate the adoption of electric vehicles in Europe has also helped customers relay on GEFCO’s integrated logistics expertise.
GEFCO continues to leverage its leadership position in automotive logistics while successfully diversifying. Recent contract wins in GEFCO’s four business lines: Finished Vehicle Logistics, Overland and Contract Logistics, Air & Sea and Industrial Services confirm GEFCO’s strong ability to successfully meet customer demands.
In Finished Vehicle Logistics, Skoda signed a five-year partnership with GEFCO for the storage and distribution of vehicles to its Slovakian dealership network. GEFCO also renewed its agreement to distribute Toyota and Lexus vehicles in the Czech Republic, Slovakia and Hungary. In France, Ford signed a partnership with GEFCO to distribute 40,000 new vehicles annually, building on an already strong partnership with Ford in Europe. In addition, truck manufacturer MAN signed a partnership with GEFCO to export finished vehicles from Europe to the rest of the world by sea.
In Overland and Contract Logistics, GEFCO was awarded a contract with Yazaki, the world’s largest producer of automotive wiring harnesses to supply components from Bulgaria and the Baltics to the Czech Republic. Electrolux renewed its confidence in GEFCO for distributing products from assembly plants in Poland, Turkey, Ukraine and Romania. Nestlé entrusted GEFCO with the distribution of water, coffee, pet care and healthcare products throughout Greece, Poland, Switzerland, France, Turkey, Portugal and Serbia. In addition, Knauf, a specialist in insulation materials for building construction, partnered with GEFCO to move materials in France and Belgium.
In Reusable Packaging, Jaguar Land Rover extended its contract with GEFCO in the UK until 2021. In addition, GEFCO has also signed several new contracts with top brands for integrated logistics services. For example, GEFCO was awarded contracts to import and store motorcycles in Mexico with two well-known brands, Royal Enfield and Zontes.
In Industrial Services, global commercial vehicle manufacturer Foton Motors signed a partnership with GEFCO in Brazil to assemble utility vehicles.
In Air & Sea, GEFCO partnered with Fresenius Kabi and Fresenius Medical Care, two divisions of the global healthcare group, to launch their first global long-term sea freight initiative. With GEFCO’s expertise, certifications and long-standing partnership with Fresenius, the two divisions were able to bundle 15,000 TEUs of medical supplies for shipment from China to Germany.
In H1, 2020 GEFCO Group at the level of GEFCO Russia implemented a number of international projects in the area of multimodal and rail transportations, delivery of oversized cargo and 4PL services for the largest Russian clients from different sectors.
GEFCO continues to develop the cooperation with Nornickel (Norilsk Nickel) Group of companies offering an export multimodal solution to deliver hundreds of containers from the production site to several countries all around the world. The cargo is collected in container trains, then it is delivered by sea to China, Canada, the Netherlands and other European countries.
As part of its interaction with a key shareholder of the company, GEFCO Russia developed a project on export transportations of several thousands of tons of rails from the production site in the Western Siberia to Mongolia for its client JSC RZD Trading Company.
GEFCO Russia took part in two cross-regional international projects. In spring GEFCO Russia together with GEFCO Turkey performed the import deliveries of the construction equipment to Ufa, Russia where the Russian party ensured the customs clearance of the cargo, collection of the equipment from the port and the delivery to the end customer. GEFCO teams from China, Turkey, Russia and Baltic countries ensure the logistics support under a large partner project on delivery of oversized industrial equipment intended for the construction of the largest oil crops processing plant in Europe owned by Sodrugestvo Group of companies, one of the leading players in the agricultural-industrial complex of the Russian Federation.
In 2020 GEFCO Russia reiterated its leading position in development and implementation of efficient supply solutions for automotive logistics. The project on large deliveries of vehicles for SSCR Logistics Co.,Ltd from China to Uzbekistan is based on rail transport and specialized rolling stock – double-deck car carriers – involvement. On the client’s demand GEFCO did not only provided its own rail fleet but also effected the payment of rail tariffs in moving on the territory of adjoining states – Kazakhstan and Uzbekistan.
GEFCO is steadily increasing its activities in line with our customers’ production ramp-up schedules. The Group is confident GEFCO’s business model will continue to drive robust performance until the end of the year, despite the continued headwinds due to Covid-19.