Neele-Vat: a merger of strengths

No more spots on the neck

It was undoubtedly the most notable merger of the year in the Port of Rotterdam. In line with the principle that “one plus one is more than two,” the competing logistics service providers Neele Logistics and Vat Logistics decided to continue operations under the name Neele-Vat as of October 1, 2014. The result: a single large family-owned business with 570 employees and revenue of 230 million euros, capable of addressing virtually any logistics challenge.

Ron Neele does not beat around the bush: when Neele Logistics was still an independent company, he did not like his biggest competitor. I actually didn't like Cuno very much, even though I didn't even know him personally," he says with a big wink. When we had goods in storage, a truck from Vat Logistics would drive up to distribute them. Even though we could do that ourselves. Yes, that did leave a mark on my neck...'

"Cuno" is Cuno Vat, director of Logistics and in charge of ICT. He laughs at the comments of Neele, the CEO of the new company. For Cuno Vat knows the feeling all too well. "To put it mildly, I too didn't think it looked very nice, such an orange truck from Neele in front of our beautiful blue Vat building ... Then quite a few ugly words went across the table, haha.

From Competition to Collaboration

But today at that same table, in the Maasvlakte Branch office, there is anything but cursing. The enemies of yesteryear have become good friends. Thanks to a lot of cups of coffee, bouncers and especially thanks to Ruud Vat. Cuno's father, founder of Vat Logistics, gave the initial impetus for the merger. At first I didn't take it seriously,' says Ron Neele, 'but I started thinking about it. And the companies turned out to really fit together. Broadly speaking, we did the same things: road transport throughout Europe, storage and transshipment, customs handling, forwarding and sea and air freight. In addition, we were about the same size and although we fished in the same pond, we did not have many customers in common. There really was: one plus one is more than two; or in other words, it was a merger from strength.'

Cuno Vat: "And those people from Neele turned out to be nice guys after all. So the stains disappeared from the neck. It took some months and discussions, but that is logical. A merger is just like getting married; you don't do that just like that.'

Prejudice

Now that the merger has been completed, Ruud Vat has taken a step back. From his advisory role in the background, the 63-year-old entrepreneur is pleased to see that a strong company stands, with twenty branches in Rotterdam (Hoogvliet, Distripark Eemshaven, Maasvlakte and Botlek), Amsterdam, Duiven, Coevorden, Vantaa (Finland), Rovereto (Italy), Zeebrugge (Belgium), Prague (Czech Republic), Moscow (Russia) and Oradea (Romania). As a result, Neele-Vat now covers the whole of Europe with its services and can offer a suitable warehouse for storage for every customer; whatever goods that customer has.

'With safety in mind, the Maasvlakte is an ideal location to store dangerous goods'

The integration of both companies is going well, says Cuno Vat. 'Apart from some minor pains, customers have not noticed too much. Our staff were told out loud immediately after the merger that no one would lose their jobs. In all plans and implementations, the staff has always been at the center. However, there are misplaced prejudices back and forth. As management, it is up to us to eliminate these and get everyone on the same page, so that our customers get the commitment and service they are used to from both family businesses.

Now that that is in place, it is time for future plans. In the coming months, the seven-member board will consider the first five-year plan. Five years that Neele will complete as CEO anyway, after which Cuno Vat will succeed him. Neele knows where the opportunities lie. 'We see a lot of opportunities in intermodal transport (by rail and short sea, ed.). That is now about fifteen percent of our business, but that should certainly become thirty to forty. Transportation by truck is becoming increasingly expensive due to tolls and environmental taxes. The train is the mode of transportation of the future. We now have two lines, to southern Germany and Italy, but we want to add at least four more, to Poland, Slovakia and possibly Switzerland and France, among others. We try to convince customers of this and also play an active role in the discussions about the construction of more rail lines on the Maasvlakte. This is just one example, as there are many fronts on which we see opportunities. We do not sulkily walk behind changes, but try to actively respond to developments or even to be ahead of them.'

New shed

Another example is the new warehouse being built by Neele-Vat. In addition to the existing 24,000 square meters on the Maasvlakte, there will be a 20,000-square-meter shed specifically for the storage of dangerous goods. 'We see more and more (petro)chemical (semi)products coming to Rotterdam from America and Asia,' says Cuno Vat. 'In terms of safety, the Maasvlakte is an ideal location to store them. We already have eight thousand square meters in our current warehouse for the storage of these ADR goods and we know all the safety procedures. This means we stand for quality. Moreover, the warehouse will soon have a CO2 extinguishing system that is revolutionary on this scale, so that in the event of a fire the other goods will not be damaged. It is a risky investment, because we have not yet received an order. But doing business is taking risks. Doing that is what made both Neele and Vat great, and we will continue to follow that philosophy with our new venture.'

Source: http://www.friendsinbusiness.nl
Text: Bas Abresch
Photography: Jeffrey de Regt

Gasmeetstation

As an innovative logistics service provider, Neele-Vat responds to developments in the industry. One such trend is the increasing requirement to test containers for harmful gases. The independent company Gasmeetstation Rotterdam has its own facility at the Maasvlakte site, where not only is the amount of gas measured, but containers can also be degassed and—for export—gassed. “We’re very committed to environmental sustainability and want to invest further in this area,” says CEO Ron Neele. “We recently acquired another gas meter, which now allows us to serve the entire country effectively. Given the increasingly stringent environmental regulations, we see opportunities for growth in this area. We have the physical capacity, the know-how, and the permits, so we expect to be able to help many customers in this area. It also aligns with our strategy of managing the entire logistics process for customers, including all related aspects. We truly offer a complete package of services.”