Analytiqa: Logistics Bulletin: Friday 17th August

This week’s Logistics Bulletin reports on a mix of M&A news, interim financials, contract wins, property, technology and people news. In the UK, Eddie Stobart is set to join the London Stock Exchange in a reverse takeover after the Group agreed a £138.0 million deal with Westbury, a property and logistics business. Stobart Group Limited is to be created through the integration of Westbury and Eddie Stobart Group, to exploit demands for integrated transport and logistics services, combining road, rail and ports activities.

Elsewhere, distribution centre developments are prominent, with expansion plans announced across growing markets in Asia and Eastern Europe, and also at Culina Logistics in the UK and leading retailer Macy’s, in the US. Strong financial results for the first half of the year have been reported by Expeditors and Wako Logistics in the US, and by Itella in Finland.

Primary research with UK retailers by Analytiqa, released as a complimentary White Paper, identifies the environmental benefits and cost savings of a Port-based supply chain strategy and how this is already being adopted across the UK. Analytiqa's White Paper includes case studies of three organisations who have already implemented such a strategy - ASDA, BMB Group, Stiller Group. To request your complimentary copy of the White Paper, please send an email to enquiries@analytiqa.com with your request.

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Detailed analysis of over 2,000 company financials, by industry, in context of the current European supply chain environment.

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European Transport Barometer

Analysis of over 1,200 surveys, across 18 countries to provide a truly Pan-European perspective of trends and developments in Road Transport

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See http://www.analytiqa.com/reports.aspx?ReportId=273 for more details.

Performance and Profitability in European Logistics

Detailed analysis of over 2,000 company financials, by industry, in context of the current European supply chain environment.

Benchmark against sector averages, identify and target growth markets, sectors and potential new services or monitor performance ratios.

See www.analytiqa.com for more details. Delivered via Analytiqa Interactive, use presentation-ready tables and graphics - just select and drag the tables and graphics directly into your own documents, nine language translation facilities and keyword searches to select only the report sections that are relevant to your projects.

Eddie Stobart joining Stock Market

15 August 2007 - Eddie Stobart is set to join the London Stock Exchange in a reverse takeover after the Group agreed a £138.0 million deal with Westbury Property Fund (‘Westbury’), a property and logistics business. Stobart Group Limited is to be created through the integration of Westbury and Eddie Stobart Group. The new enlarged business will operate as an integrated transport and logistics service provider, combining road, rail and ports activities.

The merger brings together two companies, which see huge commercial and environmental benefits of combining road transport and storage with rail freight and waterborne transport systems, thereby offering customers a truly integrated transport and logistics solution.

Westbury brings a port development site in Runcorn, a rail freight operating business and a rail terminal in Widnes. Westbury has a strong balance sheet, an experienced Board and an established following from some leading City investors.

Eddie Stobart has a modern, well-invested fleet of more than 1,500 trailers and 900 trucks (tractor units). The business also has circa 241,500 m2 of storage space across a network of over 27 operating sites (including 10 customer sites) across the UK and one site in Belgium as well as its own rail operations.

Since 2004, Eddie Stobart has been run by the founder’s son, William Stobart and his school-friend and business-partner, Andrew Tinkler. Eddie Stobart will continue with management group, with Andrew Tinkler becoming Chief Executive Officer and William Stobart becoming Chief Operating Officer.

The combined Group will have an established portfolio of long-term, big-brand customers, including Tesco, Coca-Cola, Johnson & Johnson and Sarah Lee, employing more than 2,000 people across the UK, principally in Carlisle, Daventry, Runcorn, Widnes and Warrington. At Widnes, in the North West, the combined group plans to develop over 92,900 m2 of additional warehousing space which could create in excess of 1,000 new jobs.

The enlarged Group will be transformed into a multi-modal transport and logistics business giving its customers access to road, rail, deep sea and inland waterway transport systems and deep sea port, inland port and rail-connected storage facilities. The Group will have a net asset value in excess of £250.0 million. As part of the deal, Westbury will dispose of substantially all of its wholly-owned property portfolio for £142.0 million.

Upon the release of news of the deal, an announcement was also made that O’Connor, a rail-connected freight handling business, will be acquired for £23.0 million. O’Connor is a rail terminal operation located immediately adjacent to the AHC site at Widnes covering approximately 39 acres. O’Connor currently handles four trains per day with an annual throughput of approximately 70,000 containers. The operation is a partner in the Mersey Multi Modal Gateway Project. In addition to its railhead operations, O’Connor operates approximately 73 tractor units hauling containers from the railhead to their final destination. O’Connor currently operates solely in railhead and in transportation and has no warehousing activities.

Westbury was established in January 2002 as a closed-ended investment company. In August 2006 Westbury repositioned itself as a commercial property, ports and rail business with the intention of redeploying its assets from commercial property into ports and logistics sectors. In January 2007, Westbury announced that it was considering the disposal of a portfolio of its properties. Westbury owns Port of Weston in Runcorn, a 50 acre site with road, deep sea, inland waterway and proposed rail access.

A significant, five year phased regeneration of the site into an inter-modal port facility is proposed which will enable freight currently transported by road to be transferred to water and rail. The proposed regeneration intends to incorporate:

> up to 37,160 m2 of warehousing including a bulk processing capability and palletised and bonded storage facilities;

> new container handling facilities fronting the Manchester Ship Canal capable of handling 1.0 million tonnes of freight per annum;

> an extension to the existing West Coast main line rail siding into a new on-site rail connected warehouse facility;

> a new link road providing improved access from the local road and wider motorway network;

> improved navigable access between the dock and the Manchester Ship Canal in order to accommodate short sea and coastal, as well as deep sea, shipping vessels; and

> a bulk liquid tank farm and packing facility.

Westbury, through its subsidiary Westlink, has recently completed a strategic joint venture, VWR, with Victa Railfreight, a rail freight operator. Westbury announced in March 2007 that it had acquired AHC, a rail terminal operator and storage, facilities handling and transport business on a 103 acre site. AHC has a long track record in logistics and train terminal operations and benefits from longstanding client relationships and secure revenue streams. There is a substantial rail head on site with four rail sidings which, once fully operational, offers the potential to boost income levels through rail freight operations.

Eddie Stobart has recognised the growing demand for energy efficient transport solutions and started its rail operations in 2006. It now operates a daily round trip rail service from Daventry to Grangemouth, five days a week.

Elsewhere this week:

Stolt-Nielsen investigate LPG logistics
http://www.analytiqa.com/newsitem.aspx?articleid=2813

Univar acquires Dow Canada’s western caustic soda distribution assets
http://www.analytiqa.com/newsitem.aspx?articleid=2819

Expeditors grow H1 net revenues by 12%
http://www.analytiqa.com/newsitem.aspx?articleid=2809

Favourable economic trends boost Itella’s H1 result
http://www.analytiqa.com/newsitem.aspx?articleid=2820

Wako Logistics Group reports 51% increase in H1 revenue
http://www.analytiqa.com/newsitem.aspx?articleid=2816

Multipart Supply Chain Solutions secures TVR logistics contract
http://www.analytiqa.com/newsitem.aspx?articleid=2822

New Dawn distribution deal for Atchison Topeka
http://www.analytiqa.com/newsitem.aspx?articleid=2814

Culina announces plans for fourth major distribution centre
http://www.analytiqa.com/newsitem.aspx?articleid=2815

DHL establishes logistics centre in Eastern Tallinn
http://www.analytiqa.com/newsitem.aspx?articleid=2811

YIT invests in logistics terminal
http://www.analytiqa.com/newsitem.aspx?articleid=2812

Macy's to open new logistics centre in Illinois
http://www.analytiqa.com/newsitem.aspx?articleid=2817

Mapletree scales up logistics pipeline with new logistics parks in China and Vietnam
http://www.analytiqa.com/newsitem.aspx?articleid=2818

Geodis Wilson Goes Live on GT Nexus Portal
http://www.analytiqa.com/newsitem.aspx?articleid=2823

DHL recruits senior marketing professionals in Middle East
http://www.analytiqa.com/newsitem.aspx?articleid=282 1

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Analytiqa is a market analysis and business intelligence company providing published reports, custom research and consulting for multi-national clients across a number of industry sectors from Logistics and Distribution through to FMCG and Professional Services.

List of Key Industry Participants:

ABX LOGISTICS; BAX Global; CH Robinson; DHL Global Forwarding; EGL; Exel; Expeditors; FedEx; GeoLogistics; Hellmann Worldwide Logistics; Kintetsu World Express; Kuehne & Nagel; Maersk Logistics; Nippon Express; Panalpina; Schenker; SDV; UPS SCS; UTi Worldwide Logistics; Yusen; Wincanton; APL Logistics; TDG; Rhenus Logistics; Penske Logistics; DPWN; DHL; DHL Exel Supply Chain; Federal Express; Schneider Logistics; Schneider National; Schenker Logistics; Stinnes; Gist; Eagle Global Logistics; Menlo Worldwide; Jones Lang LaSalle; ProLogis; DTZ; Gazeley; Groupe Norbert Dentressangle; National Logistics Company; TNT; TNT Logistics; Gefco; Maersk; Geodis; GEFCO; Bibby Distribution; Global Automotive Logistics; Autologic; NYK Logistics; Dachser; DSV; Fiege; Frans Maas; Hellmann Worldwide; MOL; KWE; Kintetsu; Ewals; UPS; Ryder.

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