Damco picks up Unilever cross-border contract

Damco has clinched two contracts to handle cross-border transport to Cambodia for global manufacurer Unilever.


With the appointment, Damco will truck an annual volume of several thousand tonnes of fast-moving consumer goods for Unilever.


The contracts, covering Thailand to Cambodia and Vietnam to Cambodia, create a solid foundation for Damco’s further expansion of cross-border services, leveraging on Damco’s strength in the Indochina region.


“These contracts represent a vote of confidence for our transport and customs clearing services, which meet the needs of our FMCG customers for an end-to-end solution with short and reliable lead times,” said Tony Hotine, chief executive officer for Damco, Asia Pacific.


In response to capacity and transit time challenges faced by its customers, Damco has developed overland solutions to support both import and export handling for the Cambodia market.


These solutions are more cost-effective, offer higher product security and often have shorter transit times than traditional alternatives.


Additionally, Damco has developed new services that improve customers’ access to airports and sea ports in both Vietnam and Thailand; these include greater access to capacity, more frequent sailing options, and direct flights and liner options.


Damco’s first Thailand-Cambodia contract with Unilever was awarded in February 2010.


The FMCG goods were carried from two Thailand distribution centers to a centre in Cambodia.


Damco converted half the volume to containerised trucks, which provide higher security. The move resulted in no damaged cargo and lower cost per carton for Unilever. This careful attention to service and cost reduction was a driving factor for winning the contract renewal for a second year.


“We expect a significant improvement in our service levels and a quicker response to market needs as a result of this new contract,” said Maks Mukundan, managing director, IndoChina of Unilever.


Mukundan said the enlarged contract was a result of the excellent service and competitive rates offered by Damco during the tenure of the previous cross-border contract from Thailand to Cambodia.


The new business includes a contract for cross-border transport from five Vietnamese factories to a distribution center in Cambodia.


Trade is set to grow between Thailand and Cambodia, and between Vietnam and Cambodia, resulting in a growing volume of cargo along these corridors.


“We will focus on expanding our Indochina cross-border trucking network to provide the best service to our customers in the region to support the growth of their import and export-related businesses,” said Hotine.
(Source:http://www.cargonewsasia.com)