A new national subsidiary in Vietnam

St. Gallen, December 18, 2023. Logistics company Militzer & Münch is growing in Asia: M&M Militzer & Münch Vietnam Co. Ltd. starts operations today. The new country unit offers the full range of Militzer & Münch services, with a special focus on air and sea transports.

The Militzer & Münch Group is pursuing a growth strategy in the Asia / Far East / Oceania region. Most recently, a new company was founded in New Zealand in 2022. After M&M China, M&M Malaysia, M&M Sri Lanka and M&M New Zealand, M&M Vietnam is now the fifth national subsidiary in the region. It is located in Ho Chi Minh City. The 9 million-strong metropolis on the South China Sea is both the economic center of the country and an important transport hub for Southeast Asia.

Significant development opportunities
Militzer & Münch focuses on promising markets in the region and considers the location to have great potential for further growth: “Within a few years, Vietnam has developed from one of the world’s poorest nations to a middle-income country”, says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “We therefore see good opportunities for successful development while at the same time strengthening our network in the region with the new country unit.”

Militzer & Münch Vietnam will serve many different industries in import as well as in export. A large part of the transport volume will be generated by sea and air transportation. Peter Schüpbach, who previously held various management positions, is heading the new subsidiary.

In the Balkans: successful growth

When Militzer & Münch opened its country unit in Serbia in October 2019, the logistics provider already planned to expand further in the Balkan region. Thus, in summer 2021, Militzer & Münch not only founded two more country units there, Militzer & Münch Bosnia-Herzegovina, and Militzer & Münch Montenegro, but also started its own courier service in Serbia in early 2022.

“We have made it our goal to expand our network to cover the entire Balkan region,” says Nikola Vasiljevic, Executive Director of the three Balkan country units. “With Bosnia and Herzegovina and Montenegro, we have already taken the first steps in this direction.” Both country units currently count three employees each; road transportation is the main business, but warehousing and customs clearance are offered as well.

Correct market assessment
Most of the customers in Bosnia-Herzegovina and Montenegro are already long-standing Militzer & Münch customers in Serbia. For both new markets, however, the last two years were highly unpredictable and challenging, due to the impact of the Corona pandemic, the war in Ukraine, and supply shortages. “Despite the many hurdles we had to overcome, we were able to adapt and grow,” says Nikola Vasiljevic. “We have been able to correctly assess the market, take our service to a new level and find the best solution for each customer need.”

 Meeting the demand
Yet it is not only geographically that Militzer & Münch is growing in the Balkan region; the service portfolio in Serbia has also been expanded. “During the pandemic, it became apparent that there is a high demand for top-quality, safe and fast courier services,” says Nikola Vasiljevic. “Which is why we decided to establish M&M Express at the beginning of 2022.” The courier service already employs 20 drivers and operates a fleet of 18 delivery vans – all of which “M&M Express” branded. The team handles 15,000 to 20,000 shipments a month from 200 terminals and also offers to pick up shipments on site if requested.

 Innovation and automation
As the business grew, Militzer & Münch Serbia decided to invest in innovation and automation. The company built a new 1,000-square-meter cross-dock between the existing warehouses in Dobanovci, Serbia. Cross-docking means that goods are no longer stored, but are handled directly and forwarded to customers. The new automated building is equipped with conveyor belts, sorting machines and elevators that lift goods to shelves and mezzanines. At the cross-dock facility, Militzer & Münch Serbia can process up to 2,000 shipments per hour. Deliveries pass through a scanner, are recorded by the warehouse management software, and automatically sorted according to 31 zones. “Automation has allowed us to dramatically increase efficiency and boost capacity,” says Nikola Vasiljevic. “Our courier service is growing day by day, and we expect to have expanded significantly by the end of the year, covering the entire territory of the Republic of Serbia with our courier service.”

Cranes at sea

Militzer & Münch Turkmenistan Ltd. offers its customers comprehensive transport logistics services in the fields of road, air, sea, and project transports – and, as an additional service, crane rental.

In the year 2008, the Turkmenistan country unit launched the service with two cranes, and in 2015, two more were added. There is demand for the special technology, especially from internationally active energy companies, such as Eni or Dragon Oil. “The oil and gas industry is an important sector in Turkmenistan, and we are seeing high demand here. But customers from the construction industry also make use of our service”, reports Djeyhun Hummedov, Managing Director of M&M Militzer & Münch Turkmenistan Ltd.

In the context of oil drilling operations, for example most recently in the Caspian Sea, the cranes are used onshore to move the platforms between job sites. On the offshore platforms themselves, the cranes transport cargo. A crane can lift up to 75 tons.

The offshore operations also present challenges: “The very high salinity can lead to corrosion on the metal parts of the cranes,” says Djeyhun Hummedov. “Regular inspection and maintenance are therefore essential to ensure that the cranes function properly.” The crane operators employed specifically for crane rental at Militzer & Münch Turkmenistan have a special permit to work on the platforms and are regularly trained in occupational safety.

Djeyhun Hummedov: “Customers who rent our cranes not only get modern technology, but also qualified personnel and full service –  from erecting and dismantling the platforms to prompt repair and spare parts delivery.”