The Westerlund Group of companies is one of the leading international logistics providers specializing in the pulp and paper industry. Known primarily for its terminal operations, with marine terminals in the Ports of Antwerp (Belgium), Rouen (France), and Changshu (China), Westerlund also provides stevedoring and logistics support in freight-forwarding and transportation. Other facilities include a container freight station at Marseille/Fos (France) and an inland terminal in Jining (China). In 2008, Westerlund handled over 6 millions tons of forest products, including 2.2 millions tons from its Changshu operations.

In 2008, Babcock and Brown Infrastructure (BBI), the Austrialian infrastructure investment firm specializing in energy transmission and distribution, logistics and transport, completed the acquisition of Westerlund through its majority-owned subsidiary Benelux Port Holdings (BPH). BBI's holdings in Europe are structured under Euroports, which is now one of the largest port operators for forest products worldwide. Euroports’ operations in Finland and Germany, in addition to Benelux, handle an estimated 14 million tons of forest products a year.

IFPTA Journal sat down with Marcel Genadry, CEO of Benelux Port Holdings, in an exclusive interview to talk about the recent organizational and structural changes for Westerlund, and his outlook for the future of forest products logistics.

Marcel Genadry
Benelux Port Holdings (BPH) was created in mid-2007 as a joint venture between Babcock & Brown International (BBI) and Belgian shareholders (the former shareholders of Manuport) to participate in the consolidation of the port industry in Benelux. Jean-Jacques Westerlund wanted to ensure the continuity of Westerlund’s operations and together with GIMV, the other major shareholder, they sold Westerlund Group to BPH. BPH is an independent entity with its own management structure. BBI via Euroports is the majority shareholder.

Euroports has a majority stake in Westerlund indirectly via its shareholding in BPH. As you know, Euroports owns port facilities in Finland, Germany, France, Spain and Italy, and forest products are handled in many of these.

It's important to emphasize that within BPH strict corporate governance rules are applied. Decision-making is conducted within the management structure of BPH, which obviously includes today a number of Westerlund colleagues.

BPH today comprises three strong operating companies. Manuport Group, based in Antwerp and specialized in handling and distributing bulk products like fertilizers, sugar and various minerals. Westerlund, as we all know, is a household word in the forest products sector, but also has a large and successful general cargo operation here in Antwerp. Our most recent acquisition is CTB Magemon, based in Liege, Belgium, with inland terminals on the River Meuse. Like Manuport, CTB Magemon is also specialized in bulk handling and transports mainly minerals.

Outside of Benelux, Manuport has a terminal in Bulgaria and Westerlund, as you know, has operations in Rouen, France, and the well-known terminal in Changshu, China.

We also have a broad array of service companies to complement our terminal activities. These include Manuport Road Transport, a brokerage operations with a specialty in bulk goods with offices in Belgium and France; Manuport Logistics, which does forwarding and offers sea freight. Naturally, Westerlund Distribution with its own forwarding, transport brokerage and distribution activities has been integrated into BPH Groups service offering.

The majority owner of BHP, as mentioned, is Euroports. However, a minority is still owned by a group of former Manuport shareholders, all of whom are part of current BPH group management.

Jean-Jacques Westerlund is still on the board of Westerlund Group. He also has an important role within Euroports as the key person responsible for the development of forest products businesses. Given Jean-Jacques’ long experience and status in the forest products sector, Euroports decided to exploit this for the benefit of its other assets, particularly the Finnish ports of Rauma and Botnia. This is reflected by Jean-Jacques’ appointment to the board of Euroports Finland.

But Euroports also wants to develop forest products throughout its asset portfolio: its operations include, in addition to Finland, Rostock, Germany; Tarragona, Spain; Genoa, Savona and Venice in Italy, and an inland container terminal, WCT, in Belgium.

First of all, we want to consolidate Westerlund’s position in Europe, in Antwerp and Rouen, France. We will do this in part offering added value to our clients via more distribution and forwarding services, including ship chartering and road transport. Many of these extended supply chain services are possible thanks to the capabilities of the BPH Group’s service companies.

We will also actively develop Westerlund’s presence in China. Our goal is to follow the developments and needs of the paper industry worldwide.

Westerlund was one of the earliest investors in China, and it has been a very successful venture. As you know our Changshu terminal has become the main pulp import and distribution hub of eastern and central China.

We have to reinforce our presence and take advantage of our local experience to provide the right supply chain services to both our international and local clients. Hence the idea of Jining: to extend the logistics reach of Changshu and serve the major papermaking facilities in Shandong Province. At the same time, Jining has reinforced the value of Changshu as the main import hub.

To further our services offering, we just inaugurated a new freight forwarding company in early April. Based in Shanghai, BPH Westerlund Freight Forwarding will play a key role in providing efficient forwarding and distribution of pulp and paper all over China.

Jining, like Changshu, has seen some modest impact from the current economic slowdown. However, we are already seeing good signs of recovery. As prices are now very low, Chinese buyers are now building up pulp stocks. But another key factor is that the price of high-quality imported pulp is now so attractive that it is replacing a large share of domestic Chinese pulp made from agricultural residues (wheat and rice straw, reeds, bagasse). Many of these mills have been reported to have shut down, at least temporarily.

This recession is going to further the consolidation of the port operations and logistics sectors as well as the forest products industry. We will end up with the emergence of stronger players and new traffic flows.

With Westerlund already being a major player in the forest products logistics chain, and with BPH's diversification both geographically and service-wise we are well positioned to take advantage of the future recovery and growth. Westerlund as part of BPH is a more complete and diversified company, with a management committed to the development of Westerlund as an increasingly important player in the worldwide forest products logistics business.

BPH see itself today becoming a major port operator, committed to seaports as well as inland ports. We believe that BPH will distinguish itself through the extent and depth of experience of its service companies which can really create optimal supply chain solutions for our industrial clients – whether in the paper, sugar or chemical industries, whether in break-bulk, bulk or container.