The BLG Group operates externally under the BLG LOGISTICS brand. BLG LOGISTICS is a seaport and logistics service provider with an international network and operates nearly 100 subsidiaries and offices in Europe, America, Africa, and Asia. The CONTRACT, AUTOMOBILE and CONTAINER Divisions offer their customers in industry and retail complex logistics system services.
The main services provided by the divisions are presented below, broken down by business area or area of expertise.
AUTOMOBILE
The AUTOMOBILE Division is a leading terminal, technical and logistics service provider for the international automotive industry. BLG LOGISTICS offers extensive logistics services with its seaport terminals for car handling on the Rhine and Danube as well as in inland terminals. In addition to passenger car handling, services include vehicle storage, technical services and multimodal distribution services provided to customers by road, rail and inland waterways. The AUTOMOBILE Division is divided into five business areas:
The locations of the seaport terminals business area serve as hubs and are export ports for European vehicle production overseas, such as in China, the US and Scandinavia. As import ports, these terminals cover all services for the European vehicle market. The value chain includes delivery and unloading, terminal handling, warehousing and transport, as well as vehicle loading and delivery. The broad logistics portfolio is complemented by the provision of technical services, such as pre-delivery inspection (PDI), heat treatment or warehouse maintenance services. In addition to vehicle handling, the seaport terminals business area offers expertise in high & heavy handling and is therefore considered an expert in heavy cargo, project loading, gas supply, assembly services and general value-added activities throughout Europe. The high & heavy terminal is the central MAFI packing station for renowned shipping companies in the rolling loading (roll-on/roll-off) segment.
The inland terminals form a Germany-wide network for automotive logistics and offer short distances to the European highway network through their intermodal transport connections, have their own railway connections and most have a direct connection to the waterways. This network is used to establish uninterrupted and reliable logistics chains with customers. Services covered include the handling of new and used vehicles, storage and warehouse maintenance, technical services, e.g. vehicle-appropriate preparation, vehicle washing and painting, as well as vehicle valuations, fleet and hire preparation and sales preparation.
In addition, through its Southern/Eastern Europe business area, BLG LOGISTICS is represented by several maritime and inland terminals in Europe.
The rail business area is a specialist provider of rail-based European vehicle transport and provides, in particular, a connection between car manufacturers based in Eastern Europe and German sea and inland ports. As it controls an extensive railroad car fleet and its own railroad car service and logistics center, the segment offers targeted shunting, train formation and mobile railroad car maintenance.
In addition to rail transport, BLG LOGISTICS pools core competencies in road and inland waterway transport in the AutoTransport business area with its own fleet of trucks and inland waterway vessels. The segment distributes vehicles to car dealers throughout the country, organizes preceding and onward carriage to and from the terminals and takes care of ancillary services such as customs clearance and export and import administration. Our focus here consistently remains on modernizing our fleets in order to offer our customers low-emission transport chains.
In the AUTOMOBILE Division, revenue is generally recognized in the amount authorized for invoicing, as the invoiced amounts correspond directly to the value of the services rendered to date. Services are primarily invoiced and paid on a monthly basis, with the calculation based on the number of vehicles handled or transported and the agreed unit prices. In certain scenarios, the invoice is issued before the performance obligation is fully met or only once all performance steps have been executed. The portion of the consideration received from customers for which the services have not yet been performed is recognized under contract liabilities in the statement of financial position. In these cases, the sales are only recognized once the services have been transferred to the customer. Services already performed for which no invoice has yet been issued are recognized under contract assets in the statement of financial position.
CONTRACT
The CONTRACT Division coordinates complex projects and offers its customers tailored downstream and upstream logistics solutions. The division’s portfolio ranges from individual in-house processing to highly automated logistics centers. Its expertise is focused on procurement, production and distribution logistics, as well as reverse and spare parts logistics. The division comprises three areas of expertise:
The Contract Operations business segment is increasingly focused on customer proximity through a regional organization, while Customer & Business Development focuses on market developments, thereby establishing a competitive edge and flexibility. Performance Support intrinsically strengthens the organization, making it future-proof and transparent.
In addition to pooling individual locations to establish a nationwide regional presence, the CONTRACT Division offers a high level of industry-specific expertise, particularly in Mobility, Consumer & Fashion and Industrial Energy. This expertise benefits a large number of customers from industry and trade, as well as many global automobile manufacturers.
For car manufacturers, in addition to procurement logistics from the suppliers and the supply of production lines, we also consolidate, process, pack and ship goods for the supply of production plants. Complex system services ensure reliable supplies to assembly lines in Germany and abroad. With the pre-assembly of vehicle components and production-related work processes, the locations of the CONTRACT Division function as an extended workbench for automobile manufacturers.
Complex goods flows relating to production are designed and optimized for industrial companies in other sectors. The range of services also includes the supplies to and waste removal from production lines, on-site logistics for the optimal design of internal goods flows, reverse logistics management and complex assemblies. In addition, forwarding activities are carried out for the planning and scheduling of land transports.
We design, implement, manage and execute complex logistics processes for retail companies and offer our customers a one-stop solution. This applies in particular to the areas of e-commerce, multi-channel retailing, processing and value-added services for goods, the collection and processing of returns, as well as the handling of flat and hanging merchandise in the fashion logistics segment. Customized innovative solutions for high-profile customers are developed with the help of in-house IT expertise and ensure comprehensive information transparency and goods movements. In addition, we handle and store refrigerated and frozen goods at the Bremerhaven container terminal, and provide all related services.
Conventional goods handling at Neustädter Hafen in Bremen also falls under the responsibility of the CONTRACT Division. This includes the handling, storage and other logistics services for handling paper, forestry and steel products as well as project business and the handling of other heavy or bulky goods.
In the CONTRACT Division, revenue is generally recognized in the amount authorized for invoicing, as the invoiced amounts correspond directly to the value of the services rendered to date. Services are primarily invoiced and paid on a monthly basis. Capital-intensive services such as the provision of space and storage facilities are largely invoiced at fixed prices, but occasionally also according to actual use. The invoicing of personnel-intensive services is based on prices per performance unit or a combination of fixed basic remuneration and variable remuneration per performance unit, sometimes using volume tiers.
CONTAINER
The CONTAINER Division is represented by the joint venture EUROGATE GmbH & Co. KGaA, KG, Bremen, in which BLG holds a 50 percent stake. EUROGATE has its own subsidiaries and investees. The EUROGATE Group companies are included in the combined financial statements using the equity method of accounting.
The focus of the activities of the EUROGATE Group includes handling containers on the European continent as well as in North Africa. EUROGATE operates container terminals in Bremerhaven, Hamburg and Wilhelmshaven (Germany), at the Italian locations La Spezia, Ravenna and Salerno, in Tangier (Morocco) and in Limassol, (Cyprus) – in some cases with partners. In addition, EUROGATE holds stakes in several inland terminals and rail transport companies.
Beyond container handling, the service portfolio also includes intermodal services (the transport of sea containers to and from the terminals), repairs, depot storage and trading of containers, cargo-modal services and technical services.