Pythagoras Papadimitriou-Port of Piraeus-Creating a Greek Transit Center
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Pythagoras Papadimitriou-Port of Piraeus-Creating a Greek Transit Center
- 1. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Confidential PortofPiraeus CreatingaGreekTransitCenter Pythagoras Papadimitriou Managing Director HP Greece & Cyprus
- 2. 2 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Every 60 Seconds... 5Servers 120PCs 100Printers 7Network Devices 7TBStorage 1,200Ink & Toner Cartridges
- 3. 3 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Through One of Industry’s Largest Supply Chains >600 Suppliers $60B+ Total Spend 136 Manufacturing Sites 120M PCs & Printers/Year 92 Distribution Nodes 98+ Logistics Partners ~42k Direct Enterprise Customers ~160K Retail Stores Worldwide Procure Deliver CustomerMake
- 4. 4 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Europe, Middle East, Africa Supply Chain – circa 2000 Includes owned and third-party facilities Ocean Freight Gateways Main Manufacturing
- 5. 5 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential PC Final Assembly Locations – circa 2012 Includes owned and third-party facilities Mexico Mexico USA Canada Brazil Czech Australia Japan Singapore India Turkey Russia China China China China China China China China China
- 6. 6 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential CO2e Emission Factors in Transport CO2 Emission Factors 0.57 0.020.072 International Air Rail 0.01 Surface Ocean kg-km/CO2
- 7. 7 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential “Putting PCs on Trains, Not People” Containers 1,900 Trains 44 PPS Products 3.6M Chongqing China Pardubice Czech Republic Venray-Oostrum Netherlands
- 8. 8 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Europe, Middle East, Africa Supply Chain – 2013 Plan Includes owned and third-party facilities Ocean Freight Gateways Main Manufacturing St. Petersburg Prague Turkey
- 9. 9 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Europe, Middle East, Africa Ocean Freight Gateways Rotterdam (NL) Serving Western Europe & Nordic Countries Piraeus (GR) Serving Southern & Eastern Europe, Mediterranean, & Central Asian Countries Dubai (UAE) Serving Middle East & Africa
- 10. 10 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Driving Factors for Selecting Ocean Freight Gateways Ocean Freight DynamicsSupply Chain Costs Turn-around Time
- 11. 11 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Piraeus As A European Deep Sea Freight Gateway Total port area: 9 million meters2 Quay length: 3,300 meters Maximum sea draft: 18 meters Bonded warehouses: 247,000 meters2 Roofed warehouses: 76,000 meters2 Open storage areas: 900,000 meters2 2012 throughput : 2 million+ containers
- 12. 12 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Multi-modal Logistics Outbound from Piraeus Barcelona Kiev Moscow 16,000 – 20,000 Twenty-foot Containers per Year Genoa Vienna Sofia Ocean Ground Cross-docking Hub Piraeus
- 13. 13 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Block Train from Piraeus to Czech Republic Vienna Prague Thessaloniki Piraeus Santander Bordeaux Rennes Paris Sevilla Malaga Valencia Barcelona Pamplona Montpellier Marseille Nice Lyon Bern Munchen Frankfurt Milano Bologna Firenze Roma Napoli Catania Bari Ancona Venezia Ljubijana Zagreb Athinai Patras Igoumenitsa Bucuresti Istanbul Budapest Beograd Sofia Skopje Split Bar Sarajevo Madrid Vigo 2,065 kilometers Standard gauge track 3-day transit time
- 14. 14 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential Making an Impact Improving the Economy Creating Greek Transit Centers Increasing Local Cargo Business
- 15. 15 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without not ice. HP Confidential© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Working to Build Industry’s Best Supply Chain
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- Of course we also focus on greenhouse gas emissions in transport and in manufacturing…For transportation our modal conversions drive significant ghg emission reductions.Anytime we can move from air to ocean (57 to 1 decrease) or truck to rail (7 to 2 decrease), there is a great opportunity for a CO2e reduction
- An innovative solutionReduces the overall turnaround time into EuropeValuable alternative to ocean shipping. Increasing printer volumes, and making the rail solution sustainable (including a winter solution).
- By 2012 we moved our main manufacturing to China and Central Eastern Europe (CZ, SK, PL, HU)And have continued with our traditional ocean freight gateways,Rotterdam & HamburgIn addition to new ocean freight gateways that help us serve other parts of the worldPort of DurbanPort of Dubai Port of Piraeus Port of RotterdamThis is key to our strategy of getting the product closer to the customer.From circa 2000 until YTD we have moved our main manufacturing to China and Central Eastern Europe, like Czech Republic, but also Russia and Turkey;Nevertheless ocean lines continued to call traditional ocean freight gateways like Antwerp, Rotterdam & Hamburg, with extended land transport into central, South and Eastern Europe;Due to growth in emerging markets, HP keeps investigating into alternative gateways globally, including EMEA, like port of Durban (South Africa and surrounding countries) and Dubai (Middle East and African countries);Piraeus is a perfect geographic gateway, right in front of the Suez channel, serving surrounding countries in Europe and North Africa;Overall this is in support of our strategy to reduce transit time, reduce CO2 and getting our products quicker to our customers;
- We will reduce but not extinguish the shipments to northern Europe.These gateways offer us supply chain flexibilityIncreased services (higher frequency) and assumed import flow will determine solution successConstraints of using Piraeus gateway:Current low number of services from CN will impact TAT (2 departures from Yantian).Weekly feeder service to European ports will impact achievable TAT.
- Supply Chain CostsManufacturing LocationsGrowing MarketsInfrastructureTurn-around TimeDays of InventoryTime to MarketCustomer RequirementsOceanFreight DynamicsSuper Slow SteamingNew Generation Mega Container VesselsDeep Sea Port DevelopmentWhen we go into Europe with our sea shipments for printers & PCs we go into the northern European ports of Homburg and, and Rotterdam.We clear customs there and even if we’re shipping it to Turkey,North Africa or Russia, we start in the northern European ports. Any student of geography would tell youthat’s not the shortest route to Europe from China.Sailing to Greece from China when you’re coming through the Suez Canal is seven days shorter than sailing to Rotterdam. We save seven days right there, so, pretty obvious choice even if it’s exactly the same cost. It’s a logical decision. Having other ocean gateways saves us time, saves us inventory, gives us more accurate forecasting because now the lead times are seven to eight days shorter.
- OBJECTIVES:Reduce supply chain cost to South East Europe, CEE, Maghreb, Levant and CIS/RussiaExpand and optimize outbound lanes of HP PC manufacturing plant in TurkeyOptimize time to market, supporting CEE, CIS and North Africa market growth and HP market shareContainer Cross-dock through PiraeusPotential capability - Hub setup that will allow x-docking of goods and order consolidation with DT and DS from TR, to support the TR U-turn, Southern and Eastern Europe, CIS, Black-sea and Mediterranean countries.HP Goods:IDS NB from CNDesktop and Displays from TRIPG Printing direct (future flow)Displays from CN direct (future flow)Network Activities:At Piraeus:Receipt of goods into BondConsolidation of container content in bond Shipment under bond to non-EUImport into EU for EUFeeder vessels from Piraeus into regional crossdocks or handover to final carrier at destination country.At regional crossdock: resorting, load consolidation and transload into truck for distribution to HP customers.
- Project Objectives:Connect Asia (China) to Piraeus (Greece) as new EMEA Gateway From Piraeus feeder ship connection into regional Med, Adriatic and Black Sea Ports Regional cross-dock to connect by rail and truck to Southeast Europe, CEE and CIS countriesDistribution via Piraeus gatewayContainer fill in Asia by region or for Piraeus total.Split mixed Piraeus containers in Piraeus port FTZ, with opportunity to consolidate shipments/orders;EU clearance for EU destinations at Piraeus port. Bonded flow for non-EUFeed containers to destination ports and xDock.Transfer goods from container to trucking, ensure customer consolidation.Final distribution.
- Also in the continental Europe, like in the U.S., we intend to use rail (intermodal) transport as much as possible. The newly developed rail connection from Piraeus to the Czech Republic is another great opportunity that is a part of this project. Not only is gateway development important, but we also need the connecting inland infrastructure
- Like many other things that we do, we think it’s a great innovation Take advantage of Cosco investment in Port of PiraeusLocal cargo handled in Piraeus could increase by up to 50 percent.Other companies will be soon following, which providesgreat opportunity for the Port of Piraeus and the Greek economySupport Greece government in creating opportunities to support economic turnaround, creatingmutual economic benefit;