Bertschi remains confident

A YEAR TO REMEMBER

MARKET • NOT SURPRISINGLY, 2020 WAS A CHALLENGING YEAR FOR THE BERTSCHI GROUP BUT THE SWITZERLAND-BASED MULTIMODAL SPECIALIST REMAINS CONFIDENT FOR 2021

THE BERTSCHI GROUP has reported sales of some CFr 900m ($1.0bn) for 2020, some 9 per cent below its 2019 results, but only 5 per cent down when adjusted for exchange rate movements. Given the impact of the Covid-19 pandemic, Bertschi says that, thanks to the proactive measures it took, it was able to “end the year on positive note, both operationally and financially” and that, in light of the progress made with vaccinations and the growth being shown in Asian markets, it is confident for 2021.

“We are assuming that the positive trends seen in the last quarter of 2020 will continue this year. Asia, and China in particular, have largely overcome the pandemic and are currently showing impetus for growth,” says Hans-Jörg Bertschi, chairman of the Bertschi Group. “Thanks to government support measures and the ongoing vaccination of the population in the industrialised countries, the global economy should be boosted even further from the middle of 2021.”

In light of that optimistic outlook, Bertschi is planning to make significant investments, both in China and in Europe, and has appointed Marc Houtermans as the managing director of the Solutions business unit to strengthen the group management team.

LOOKING BACK The outbreak of the Covid-19 pandemic and its rapid spread across the globe had a significant effect on Bertschi’s financial results. Imposed lockdowns resulted in a drop in global demand for durable consumer goods. This was particularly evident in the automotive industry, where demand collapsed. This led to a reduction in demand for primary chemical products, resulting in a substantial decline in sales in Bertschi’s core business of chemical logistics. Demand picked up from the third quarter, driven by the end of the first lockdown and the rapid recovery seen in Asia.

The primary concern for Bertschi was to ensure the safety of its employees. “Thanks to the advanced digitalisation of our work processes, which enabled home office for a large part of the workforce, and the early implementation of protective measures at the workplaces, we have been able to offer our employees a safe working environment at all times,” says Jan Arnet, Group CEO.

Indeed, Covid-19 accelerated the existing process of digital transformation within the Bertschi Group, making business processes more efficient, secure and customer-friendly. The customer-facing element of Bertschi’s digital systems was expanded to provide end-to-end visibility over increasingly complex supply chains, often involving a combination of road, rail and sea movements.

Elsewhere, Bertschi invested in its assets, adding 1,200 containers to bring its fleet up to

a total of 37,800 units. In addition, in response to strong demand, capacity at the dangerous goods container storage facility at Bertschi’s Schwarzheide site in eastern Germany was doubled.

GOING FOR GROWTH This year’s investment looks likely to be even heavier. Late in 2020 Bertschi began construction of a new logistics hub for dangerous liquid chemicals at Zhangjiagang, to serve the greater Shanghai area, which represents the largest single investment project in Bertschi’s history. It will consist of three warehouses for different classes of dangerous goods, offering a total capacity of 25,000 pallet spaces, built on a 67,000-m² plot. In addition, the new hub will feature a storage area with a capacity for 1,000 loaded tank containers, tank container heating stations and automated drum and intermediate bulk container (IBC) filling lines.

Bertschi is not forgetting its European roots. It plans to double the size of its transhipment terminal in Rotterdam, used to transfer loads from road to rail and to store dangerous goods containers, to offer a total of 2,000 storage spots as a “containerised tank farm”. It will also respond to increasing demand in the UK, increasing its existing warehouse in Middlesbrough for bulk and packaged plastics imported from overseas, extending the site’s footprint onto an adjacent property.

Bertschi is also planning to switch more shipments from road to rail in the growing market for transport to south-east Europe. To this end, capacity will be increased at the Ploiesti rail terminal near Bucharest, acquired in 2019. Bertschi is also continuing to invest in its specialised container fleet in order to accommodate growth in the number of shipments.

PEOPLE POWER Alongside the investment in assets, Bertschi has revamped its senior management. Marc Houtermans joined the company at the start of March, arriving from Quality Circular Polymers, a company he helped found with two partners in 2014 to recycle plastics waste at a newly built plant in Geleen, the Netherlands, which has recently been sold. Before that, he held a number of management roles in the global chemicals industry.

“We have known Marc for many years through his previous work on the customer side and have been impressed by his extensive expertise and range of skills,” says Arnet. “In his global role here, he will take charge of the development and expansion of our chemical logistics hubs around the world. We are delighted to welcome Marc to Bertschi and look forward to working with him in the future.”

Houtermans takes the place of Christian Bart, who will move over to head up Bertchi’s Liquids business unit, the group’s largest. Having played a key role in the development of the Solutions business unit in recent years, he will soon take responsibility for the management of the entire global operational business.

As part of Bertschi’s long-term succession plan, Bart will step into the shoes of Christoph Wälchli, who will work alongside Bart before taking over the management of the more than 30 Bertschi subsidiaries across Europe. Both Wälchli and Bart will remain part of the group management team.

People are important to Bertschi and that is illustrated by the number of long-service anniversaries being celebrated in 2021. Six employees will be marking 30 years of service and André Gloor, a planning manager who has helped to develop and shape the rail transport of liquids to Italy, will celebrate 40 years with Bertschi.

The Bertschi Group now has more than 3,000 employees working across 77 subsidiary businesses in 38 countries around the globe, with major centres in Shanghai, Singapore, Houston, Moscow, São Paulo, Dubai, Al Jubail and Istanbul. As well as its tank and dry bulk container fleet, it operates some 1,100 trucks and 30 container terminals, making it the market leader in European intermodal transport of chemicals. www.bertschi.com

THE NEW LOGISTICS HUB FOR CHEMICALS AT

ZHANGJIAGANG (BELOW) REPRESENTS THE LARGEST

EVER INVESTMENT BY BERTSCHI, ILLUSTRATING ITS

CONFIDENCE IN THE MARKET