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DSV inaugurates its largest logistics centre in Africa
oday, P&O Maritime Logistics and Nigerian firm IO Materials Services (IOMS) jointly announce the launch of the new ‘FlexDELIVERY™’ model to provide integrated last-mile delivery services to the offshore energy industry in Nigeria.
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FlexDELIVERY™ disrupts the traditional model of high shore base startup costs, rentals and vessel time-chartered contracts by focusing on the service that is required by the energy industry – cargo delivery. FlexDELIVERY™ has marked new grounds with a freight rate model targeted at the Offshore Energy Industry which traditionally worked on an asset and facility model.
This service proves to reduce delivery times, enhance visibility and predictability which will reinvent procurement strategies, inventory management tactics and the energy supply chain as a whole. This industry first model, be it exploration, drilling, production or maintenance will drive down operating costs and capital expenditures for the energy producers by driving out structural oversupply in the energy industry which will be a welcoming shift.
By injecting a tech-led solution, FlexDELIVERY™ enhances visibility throughout the last mile delivery which has been a bottleneck for some time. Harnessing BigData and AI technology, it provides predictability with a real time view on cargo movement and delivery dates all controlled through an online booking platform. The platform reinforces the integrity of the energy supply chain, providing energy producers with peace of mind to focus on their core business being extraction of energy.
The new offering, which began service on the 4th of September 2021, is an expansion of P&O Maritime Logistics’ disruptive innovation ‘Supply on Demand’ to integrate shore base and quayside operations to deliver a comprehensive logistics solution, strategically named FlexDELIVERY™ for the Nigerian market.
Nigeria being a microcosm of the energy sector, P&O Maritime Logistics and IO Materials Services saw a huge potential in the country to offer a disruptive and tech-driven offshore supply solution like FlexDELIVERY™ï¸ due to the current expensive energy logistics supply chain.
Currently, most platforms offshore Nigeria rely on antiquated manual paper-based operations, that duplicate manpower, facilities and equipment, and cost approximately 2-4 times more than the global average for running an offshore supply operation.
On average, FlexDELIVERY™ reduces costs by 20-30% per good transported, has 20-30% lower fuel consumption and 40 -50% less distance travelled compared to traditional timecharter supply contracts.
Martin Helweg, CEO at P&O Maritime Logistics said: “Following the success of our Supply on Demand service, we saw a gap in the Nigerian market, spotting that the country’s offshore supply market was ripe for the revolutionary FlexDELIVERY™ system that brings efficiency and value to our customers.”
“With the continued expansion of our innovative service in partnership with IOMS, we’re bringing a step change to the offshore supply industry and aligning our service to be in sync with our customers’ needs: reduced delivery times, visibility and predictability.”
Through its state-of-the-art system, powered by P&O Maritime Logistics innovative technology, FlexDELIVERY™ gives customers clear visibility of cargo movement and sailing schedules in a boon to forward planning.
Christian Arndt, VP Logistics at P&O Maritime Logistics said: “By launching in Nigeria, P&O Maritime Logistics is showing the industry that smart solutions can generate efficiency gain and lower production costs. Customers will see reduced equipment, inventory carrying, and supply chain costs, while boosting productivity. With ‘FlexDELIVERY™’ offshore operators will gain back time to focus on core business activities. We are looking forward to presenting our FlexDELIVERY™ innovation to existing and future clients.”
Shore bases will be operated by IOMS from its locations, providing wide coverage for oilfields across the Nigerian offshore energy industry.
Matteo Volpi, CEO at IOMS said: “We are thrilled to be P&O Maritime Logistics’ partner in launching FlexDELIVERY™ into the Nigerian market. FlexDELIVERY™ will further reduce supply chain costs in combination with IOMS’ Digital FlexBASE™ offering.
With our deep local industry knowledge, and our network of locations and logistics partners across Nigeria, IOMS is working to further reduce supply chain costs for industrial clients, powered by P&O Maritime and our innovative supply chain solutions.”
DSV has consolidated its Gauteng operations in South Africa into a new, centralised facility which is the largest of its kind in Africa. It is situated near O.R. Tambo International Airport between Johannesburg and Pretoria and with easy access to the East and West Rand.
The logistics centre consists of approx. 130,000 m2 of buildings and covers supply chain solutions from first to last mile controlled and managed under one roof, by DSV.
The investment in DSV Park Gauteng is a testament to DSV’s commitment to South Africa and to continuing to strengthen the logistics infrastructure in the country to the benefit of DSV customers and the South African society.
The new DSV logistics centre is officially being inaugurated at a virtual ceremony today, and the ceremony host and CEO of DSV Africa, Keith Pienaar, says:
“The inauguration of DSV Park Gauteng once again underlines DSV’s strong commitment to South Africa and our will to grow the business in the region. DSV Park Gauteng consolidates several smaller offices and warehouses around Johannesburg into one large, modern logistics centre.
The foundation of our values and culture is to promote an inclusive workforce and sustainable business practices. One consolidated facility will enhance collaboration and offer truly integrated supply chain solutions for our clients and customers.”
A large-scale and modern logistics facility
The sprawling complex houses a logistics warehouse of 79,000 m², a cross-dock facility of 41,000 m² and office space of 10,000 m². DSV’s divisions Air & Sea, Road, Solutions as well as the Shared Services function will be inhabiting the new logistics centre while other specific units such as Healthcare and parts of Mounties and Solutions will continue out of their current specialised facilities.
“With DSV Park Gauteng, DSV has developed a large-scale modern logistics centre which captures the essence of our consolidation strategy to create larger and more efficient facilities, enabling us to have many of our business units together under one single roof.”
“We have packed the new DSV facility with solutions such as an innovative sorter that can handle 12,000 packages every single hour. Throughout the whole building process, we have also utilised our global experience to construct buildings where sustainability and resource optimisation have been fundamental in all processes,” says Brian Almind Winther, EVP and Head of Group Property, DSV.
