Master of Transport

Actively

German logistics enterprises, with their approx. 2.6 million employees is Germany's third largest industry - behind commerce and the automobile industry - and is one the world's leaders. Germany's largest union of logisticians, the Federal Logistics Union (BVL), with more than 7,500 members, seeks to "actively and effectively - from the investor's standpoint - capitalize", on this position, to extend the development into the transport sectors of neighboring states. It is said that the German logistics economy should develop into a "European hub" for the surrounding countries.[1] Germany disposes of the "most dense, generally best developed traffic and communications infrastructure of all European countries - and world-wide", according to a study sponsored by the Federal Ministries of Economics, of Labor, and of Transport, Building and Urban Affairs. If they fully exploit the on-site advantages, as well as those of geographical location with success, Germany, already the world champion in exports [2] would also have what it takes to become the "world champion in Transport" [3].

Positive

The German maritime transport sees itself well on its way to reach this goal. At the end of last year, the German merchant fleet was comprised of 2,998 ships - ten percent more than one year earlier. Thus this fleet has tripled in size since 1999. German shipowners, in the meantime, have the third largest merchant fleet in the world, after Greece and Japan. As far as the container freighters are concerned, economically the most important ships, Germany, with 1,280 ships, is the world leader. Further growth is programmed. In 2006, 727 ships, valued at approximately seven billion Euros, were ordered at the dockyards. Altogether German shipowners have made construction contracts valued at 26.4 billion Euros.[4] Therefore the Federation of German Shipowners is optimistic. "Germany, as a location, is using its potentials in the area of maritime travel and is expanding. That is positive."[5]

Open Ear

Not only the shipping companies, but the entire German sea and port economy is booming. Shipyards and port operators are likewise making record profits and can, once again, count on billions in state subsidies and tax benefits - because of the "very hard international competition". Chancellor Angela Merkel felt it necessary to warn the fifth national maritime conference, that the People's Republic of China is making substantial effort toward becoming the number one shipbuilding nation. This threatens Germany with the loss of market shares. Navigation is a "national task", explained the Chancellor and promised business enterprises the appropriate state support.[6] Alongside financial support - the government intends to make 5.1 billion Euros available for the elaboration of the ports - the chancellor gave also assurances of political influence. "Especially during the German EU presidency" the government will have an "open ear for the maritime economy".[7]

Monstrous

At the beginning of the year, the course of European-wide expansion taken by the former state owned German Railway, one of the world's largest logistics enterprises, is creating quite a controversy with London, at the EU level.[8] Lord Tony Berkeley, Chairman of the Interests' Protection of the British Rail Freight Group (RFG), is up in arms in Brussels against the German Railway plans that seek - with proceeds from its privatization - to attain the position of "European champion". In a letter to the EU Traffic Commissioner, Jacques Barrot, Lord Berkeley points to the fact that it is incompatible with EU law, for the government to permit the returns from the sales of a state-owned company, to flow back into that same enterprise, to then serve to finance the buying up of other firms. This kind of subsidy creates unfair conditions, said Berkeley and warned of "monstrous, European Railway monopolists".

Junction

Outside of the EU, the BVL is currently pursuing two areas of expansion, the Middle East and Russia, for which it is presenting special large meetings in the coming weeks. January 24 and 25, the BVL organized, in collaboration with the German Chamber of Foreign Commerce, a logistics summit In Dubai (United Arab Emirates), aimed particularly at contacts between German and European industrial, commercial and transport managers. The BVL considers Dubai to be one of the most dynamic economic sites in the world - for years having an average ten percent growth rate, (it is "the gateway to the sales markets of the Arab economic world and North Africa").[9] Within the briefest period, Dubai has become "a junction of world trade, a maritime junction, linking China to Europe, an aerial junction, connecting North Africa with Europe and Asia".

Corridor

On the Eastern European axis, German enterprises will be preparing further expansion steps in Moscow from February 7 - 9, 2007. The venue will be a German/Russian logistics conference, jointly organized by the German BVL and the Ministry of Transport of the Russian Federation. The BVL sees "enormous opportunities for logistics enterprises" in Russia.[10] A "gold rush atmosphere", is developing among German logisticians, according to the BVL Eastern Europe representative.[11] The returns on the Russian logistics market for the next few years is being estimated at a potential of more than thirty billion Euros. Currently less than ten percent of this mark has been reached. DHL, the freight enterprise of the German post office, expects the volume of the market to have an annual increase of at least 25 percent. That enterprise has increased its Russian returns at rates of forty percent and more, over the past three years. Market opportunities are seen in the development of Russian regions, but above all by the "logistical development of the corridor connecting China to Europe (...) Russia is the market of the future. And German enterprises are in the best position to profit from it."[12]

Tradition

The intensive cooperation in logistics on the Eastern European axis is accompanied by a German-Russian military commerce. Thus Moscow makes its railway network available for the transport of German weapons and NATO equipment to Afghanistan. The German Railroad Corp. is aiming to develop this cooperation and to form a joint venture to perform the operational modernization servicing - similar to the that of the earlier Bagdad Railroad.[13] Bids, such as these, have tradition. Already back in the time of the Czars, German railway workers were welcomed in Moscow and considered ingenious engineers. The current development of an alliance between Germany and Russia is directly aimed at the movements of resistance in the Middle East and Asia Minor, and indirectly, it facilitates the logistical encirclement of the People's Republic of China.

[1] Thesenpapier: Wachstum schaffen - Zukunft gestalten. Logistik als Motor für Wachstum und Innovationen in Deutschland; www.bvl.de
[2] see also Kraftvolle Impulse
[3] see also Der zukünftige Transportweltmeister and Master Plan
[4] Deutsche Handelsflotte bald verdreifacht - Verband Deutscher Reeder zieht positive Jahresbilanz; www.reederverband.de 01.12.2005. Volle Kraft voraus für deutsche Schiffe; Spiegel online 22.12.2006
[5] Jahrespressekonferenz 2006; www.reederverband.de 07.12.2006
[6] Merkel nennt Schifffahrt "nationale Aufgabe"; Die Welt 05.12.2006. Leuchttürme unter Wasser; Neues Deutschland 06.12.2006
[7] Bundesregierung sichert maritimer Wirtschaft Unterstützung zu; www.auswaertiges-amt.de 05.12.2006. S. auch Beispiellos
[8] Briten füchten sich vor deutschem Bahn-Monster; Die Welt 04.01.2007. See also Signale auf Expansion
[9] MENA-Summit 2007: Business Success between the Middle East, North Africa and Europe; www.bvl.de
[10] Logistikwirtschaft sieht Marktchancen in Russland: Programm der Deutsch-Russischen Logistikkonferenz liegt vor; www.bvl.de 13.12.2006
[11], [12] Russland lockt deutsche Logistikunternehmen; Frankfurter Allgemeine Zeitung 03.01.2007. See also Stürmische Entwicklung
[13] see also Die neue Bagdad-Bahn, "Verkehrsraum" - bis nach China and German Industrial Standard (DIN)