Wednesday, January 9, 2013

Agricultural Parts Contract for Freight Forwarding and Logistics Group

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Shipping News Feature

SOUTH AFRICA – Kuehne + Nagel has been awarded a contract by agricultural equipment manufacturer AGCO, to manage its aftermarket Parts Distribution Centre (PDC) in Johannesburg, South Africa. From the facility, parts are distributed within South Africa as well as to several neighbouring countries in Africa. The contract strengthens the freight forwarding and logistics operative’s position in one of the most significant sectors for the continent as a whole.

Located near the O.R. Tambo International Airport, the new facility, officially operative since December, consists of storage capacity for 40,000 parts and the built-to-suit centre will enable AGCO to significantly improve order response times to its African customers. The services that Kuehne + Nagel is offering include receiving, inventory control, picking & packing, handling of dangerous goods as well as pre-packaging and returns handling of AGCO’s spare parts. Furthermore, Kuehne + Nagel will provide air and ocean freight inbound services of parts originating from Turkey, France, Brazil and India and is responsible for the facility’s maintenance and security.

This new warehouse business is an important milestone in entering into a long-term relationship with AGCO under a signed master level agreement for warehousing. It also strengthens Kuehne + Nagel’s market position in the agricultural supply sector which shows significant and sustainable growth potential. Peter Adams, Senior Vice President of Kuehne + Nagel Contract Logistics South Africa, commented:

“We are delighted that AGCO has awarded its inbound supply chain and warehouse operations in South Africa to us. A dedicated team will ensure the successful implementation and operation of this project.”