Monday June 30 2008

Resources

Transportation: DHL introduces GoGreen service to China

There's a new way to minimize the environmental impact of shipping goods around the world.

DHL, the German express and logistics company, will introduce its GoGreen Express service in 17 countries across the Asia-Pacific region this year. The service is created for customers who are looking for an eco-friendly shipping option. In China, the carbon-neutral service will begin in July.

Counting the cost of transportation in Russia

One of the few Russian logistics operators operating in the country, Smart Logistics Group, has opened a new warehouse facility, which it says is the largest in Europe. Though aiming to make life easier for hundreds of cargo owners, this warehouse will not offset the high cost of transport for companies working in Russia.

The centre, near Moscow’s Domodedovo airport, will provide thousands of square metres of storage

Going Global; Marcopolo Chooses Egypt for 10th Assembly Plant

CAIXAS DO SUL (RS) - The process of internationalizing bus manufacturer Marcopolo, of Caxias do Sul, will be continued with the announcement shortly of a new bus assembly plant in Egypt, the company's second on the African continent. The size of the new factory will be similar to the one already established in Russia, capable of producing 3,000 units a year. The information was given yesterday in So Paulo by board of directors vice-president Jos Antonio Martins, during a speech to the Brazilian Association of Metalic Construction (Abcem). 'Within a few weeks, we can return to talking about this,' said investor relations director Carlos Zignani, letting slip that the new business involves a joint venture with a local partner.

'Every five years, Marcopolo doubles in size. We are certain that in 2009 we will take another leap,' declared Zignani. According to him, the last big jump was during 2000-2001 when the company installed itself in Mexico, South Africa and Colombia and acquired rival Ciferal, in Rio de Janeiro. Sources indicated another two investments by the end of this year. 'Last year, exports and negotiations abroad represented 42 percent of consolidated net revenues. We are going to repeat that level again this year, but in 2009 it should surpass 50 percent,' he said.

Alcoa JV with Vietnamese Govt. to Study Possible Aluminum Refinery

Alcoa Inc.'s venture with Australia's Alumina Ltd., Alcoa World Alumina & Chemicals, has "signed a cooperation agreement with Vietnam's state-owned mining company, [Vinacomin,] to develop a 600,000-metric-ton alumina refinery and will conduct a feasibility study for a separate bauxite and alumina refinery project, the company said." The news is seen as "a breakthrough in a drawn-out effort by foreign mining companies to gain access to Vietnam's rich bauxite deposits, which some estimate to hold between two billion and eight billion metric tons, roughly five percent of world reserves."

According to Reuters (6/25, Vaporean), the "joint project will combine Vinacomin's local knowledge with Alcoa's alumina refining and operating expertise."

Eurozone Data Shows Weakening Manufacturing, Business Confidence

The Wall Street Journal reports, "Business activity in the Eurozone contracted for the first time in five years," according to the Eurozone's Purchasing Manager's Index (PMI) and Germany's Ifo Index of business confidence. Both measures fell in reports released Monday, "suggesting the global economic slowdown is now seriously affecting the 15-nation Eurozone." The PMI, "which measures business indicators such as new orders and output in the manufacturing and service sectors in the group of nations that use the euro currency, fell to 49.5 in June from 51.1 in May." Meanwhile, the "German Ifo Index fell by more than expected to 101.3 in June from 103.5 in May," as German companies said "they expect business conditions to deteriorate in the coming six months."

According to the Financial Times (6/23, Garnam, subscription required), "Analysts said the figures would make uncomfortable reading for the European Central Bank, which has all but guaranteed that it will raise interest rates by 25 basis points to 4.25 percent after its policy meeting next month."

Bosch Working with MIT on High-Tech Energy Research Initiative

MIT and Bosch have entered into a new energy research collaboration aimed at exploring new materials and concepts for efficient energy-conversion and energy-storage systems.

As per this collaborative agreement, Bosch becomes a sustaining member of the MIT Energy Initiative (MITEI), and will contribute US$5 million to MITEI over a five-year period. The components manufacturer will support ten 'Bosch-MIT Energy Fellows.' These graduate students will conduct research in various energy disciplines.

27 of 36 Trucking Companies Share Prices Gain During 2008 During Industry Woes

Despite trucking’s struggles to overcome record fuel prices, weak demand and overcapacity, many carriers’ stocks have gained thus far in 2008.

Share prices of 27 of 36 publicly traded U.S. fleets rose between January and mid-June, based on a Transport Topics review of their performance. Investors either looking for bargains or anticipating a rebound pushed Standard & Poor’s Trucking Index up 31 percent by midyear. The S&P Trucking Index comprises 11 large companies, including YRC Worldwide.

Cummins, Navistar to Use Credits to Meet 2010 Engine Standards

The two major engine makers that will employ exhaust gas recirculation technology to meet the tightened federal emissions rules that go into effect in 2010 will use credits they have earned from the Environmental Protection Agency to hit the new mark.

Cummins Inc. and Navistar Inc. have both said they will use EGR for their heavy-duty engines in 2010. But executives with the two manufacturers said separately that the averaging or banking of credits — a process allowed by EPA since 1990 — will probably be the key for reaching the last margin of improvement for lowering emissions of nitrogen oxides to 0.2 gram per brake horsepower-hour by January 2010.

May Truck Tonnage Jumps 3.3 percent From a Year Ago

Truck tonnage in May jumped 3.3 percent from a year earlier, marking the seventh straight year-over-year increase, American Trucking Associations said.

Tonnage rose 0.5 percent from April, the first month-to-month gain since January, ATA said in its monthly seasonally adjusted for-hire truck tonnage index.

Billionaires to unite to create world metal leader?

Four Russian tycoons may soon pool their assets, creating a metals-and-mining holding company. Alisher Usmanov has invited fellow Russian metals moguls Vladimir Potanin, Viktor Vekselberg and Oleg Deripaska to merge their resources.

Alisher Usmanov told journalists that Viktor Vekselberg has accepted his invitation to team up in order to create a major independent mining and smelting enterprise

MEMA’s McKenna to Participate in CIIAM Panel Discussion of the New Automotive Business Model

Bob McKenna, president and CEO of MEMA, will join representatives of “Automotive News,” Merrill Lynch and Butzel Long to discuss the new automotive business model at the International Congress of the Automotive Industry (CIIAM) at noon on Tuesday, July 8, at the Centro Banamex, Mexico City.

CIIAM is set for Monday, July 7, through Wednesday, July 9, prior to PAACE Automechanika Mexico – which will be held Wednesday, July 9, through Friday, July 11, also at Centro Banamex.

Navistar Defense Announces New $707mil Truck Support Contract

Navistar Defense, LLC has announced a US$707m contract for Mine Resistant Ambush Protected (MRAP) vehicles from the US' Marine Corps Systems Command. The trucks are to be used in Iraq and Afghanistan, the company states.

Under the new arrangements, which are fixed-price modifications to delivery orders awarded in fiscal 2007, Navistar Defense will also support several engineering change proposals for its MaxxPro vehicles. Work for the engineering updates will be conducted at the company's West Point assembly plant in Mississippi.

Volvo Open New Truck Plant in Russia in January, 2009

Volvo Group (Volvo), a Sweden-based automaker, is opening a truck manufacturing plant in Kaluga, Russia on January 19, 2009.

The automaker had signed a contract with the Kaluga region government to construct the facility in the summer of 2007.

CVSA's Roadcheck 2008: Lowest Vehicle Out-of-Service Rate in Decades

CVSA's recent check on the industry shows the lowest rate of out-of-service vehicles in two decades, despite concerns that a weakening economy with ever-increasing fuel prices would push safety to the bottom of the list for commercial motor vehicle fleets.

"This rate (23.9 percent vehicle out-of-service rate for Level I Inspections) is the principal barometer used to measure compliance and it is the lowest we've seen in the 21-year history of Roadcheck," said Stephen F. Campbell, CVSA's executive director. "It is clear the safety message is being heard and that the increased enforcement presence is making a difference. We appreciate the industry's continued commitment to make safety its top priority not just during Roadcheck, but throughout the entire year."

Caterpillar, Navistar to Team-Up in Bid to Reduce Costs

Partly in a bid to reduce commodity and raw material costs, Caterpillar Inc. and Navistar International Corp. have signed a memorandum of understanding to collaborate on truck and engine projects.

The move is more broadly aimed at boosting global truck and engine business for the two companies as well as combining engine platforms and sharing engine technology.

Trade Lawyer Dispels Manufacturing "Myths."

Gilbert B. Kaplan, a partner in the international trade practice of King & Spalding, attempts to dispel five "myths about the death of the American factory."

His first myth is that "American workers are just paid too much." He wrote that "that's just wrong. Labor costs are already less than 10 percent of the cost of making many products." Instead, Kaplan calls the cost disadvantages "self-imposed," as the U.S. "doesn't rebate taxes to corporations when they export manufactured products, the way other countries do."

Commentary: The Energy Crisis of 2008

U.S. Chamber of Commerce: In just one year, crude oil prices have soared from $65 per barrel to as high as $135. The price of gas is now $4 a gallon.

These runaway energy prices are punishing an economy that is already weak. Millions of small businesses and families on tight budgets are struggling.

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