Matthias Magnor will assume the position of Chairman of the Board of Management of the BLG Logistics Group on January 1, 2025. He succeeds Frank Dreeke, who is retiring. In an interview with DVZ, Magnor provides insights into the expansion of business activities, the economic prospects in automotive contract logistics and the internationalization of the company.

The Chinese automotive industry is investing heavily in electromobility. Matthias Magnor, designated CEO of the BLG Logistics Group, is impressed by the development there. Asian car manufacturers have learned a lot from the German industry and have now overtaken it. This also has consequences for the Bremen-based logistics service provider

DVZ: Mr. Magnor, it’s less than three months until you take over from Frank Dreeke. Are you excited?
Matthias Magnor: Of course I’m excited, that’s part of it. I once compared it to jumping off a ten-meter board – you’re determined, you’re at the top and you have to jump. It’s a mixture of anticipation and respect for the task, which creates a healthy tension. Fortunately, the handover has so far been a controlled and well-planned process. Frank Dreeke is passing on many of his contacts, which is very, very helpful. At the same time, of course, the operational business continues

How well do you feel about GXO?
You are alluding to the loss of the Tchibo business. That was certainly painful, especially as the business relationship had existed for over 20 years and Tchibo was an important customer in contract logistics. But such decisions are part of the business. It was a sober, commercial decision that was made by both sides. Of course we regret it, but at the same time we were able to win new, exciting projects that will take us forward.

Can you give us an example of new projects that compensate for this loss?
Among other things, we recently received a major order from a German cosmetics manufacturer. We are taking over the disposal of production and distribution in the Leipzig area for them. This project reduces our dependence on the automotive industry and strengthens our portfolio. We were also able to win the production logistics of Mercedes-Benz in Düsseldorf for Sprinter production. Further new orders have come from Siemens, including for turbine assembly in Bremerhaven and for new projects in Berlin and North Rhine-Westphalia.

What is the volume of business with the cosmetics manufacturer?
I can’t give any details at the moment. We will employ a three-digit number of people.

When does it start?
The go-live is planned for early 2027. Until then, we are developing this highly complex project together with our customer.

Does BLG also handle e-commerce fulfillment?
E-commerce is not part of the process at the moment. But this is also a possibility that could develop in the future.

Mercedes-Benz has been a BLG customer for a long time. What is the volume of new business in Düsseldorf?
On average, over 100 people will be employed here.

The German automotive industry is in a difficult situation. How do you assess the situation, especially in comparison to the competition from China?
The automotive industry is currently facing major challenges, that is undisputed. I was recently in Shenzhen at BYD and it is really impressive what has been created there. The Chinese car manufacturers have learned a lot from the German industry and are now in a situation where the student has overtaken the master. And that is not necessarily to be understood arrogantly, but in the sense of a healthy self-confidence. This development is also reflected in the declining export figures for premium vehicles to China. The consequences for us are far-reaching. In contract and production logistics and also in the CKD sector, volumes are falling massively. We’re not talking about 10 or 15 percent, but rather 25, 30 or even 35 percent. Of course, it’s a challenge to manage something like this well with an existing team

How can this be achieved
We are trying to reduce our dependence on the automotive industry by acquiring new customers in other segments. This is not just a challenge for us, but for the entire logistics sector. At some locations, particularly in contract logistics and port handling and hinterland transportation, we are heavily dependent on the automotive industry. However, we can compensate for this to a certain extent through exports and imports – for example from Korea, Japan and the international plants of German OEMs. Chinese car manufacturers have so far only played a minor role in our portfolio in Bremerhaven, accounting for around 5 percent. Even though it was said at the beginning of the year that a “Chinese tsunami” would flood the market with electric vehicles, this has not materialized so quickly. Nevertheless, the Chinese are continuing to push ahead with their expansion.

However, consumers in Germany are still reluctant to buy electric vehicles.
Of course, the electric vehicles also have to be sold, and the short-term removal of subsidies has not helped. Such decisions planning more difficult for many buyers. Added to this is the inadequate network of charging stations. This has also put me off buying a purely electric car. Instead, I drive a hybrid car. Nevertheless, I am confident that electric vehicles will achieve a significant market share in the next ten years

Contract logistics is closely linked to the automotive industry. To what extent is BLG dependent on this sector?
We carried out a strategic cell division around two years ago. This means that we separated automotive logistics from the rest of industrial and retail logistics. This allows us to better focus on other areas, in particular on companies that support the energy transition.

Do you expect consolidation in automotive contract logistics in Germany?
Yes, because I don’t believe that this market will grow in the future. Electric vehicles consist of significantly fewer parts than combustion vehicles, which reduces the logistical effort. In addition, production will increasingly take place in Eastern Europe. This is a trend that we have been observing for some time and that we are following.

How do you want to strategically position BLG as the future CEO?
We are well positioned with our three divisions of contract, automotive and container logistics. But we have to remain flexible and adapt to new market requirements. One exciting field, for example, is carbon capture (CO2 capture and underground storage, editor’s note). One of our customers in Mülheim an der Ruhr produces carbon capture pipelines that are to be laid across the North Sea. We are handling the pipes here in Neustädter Hafen in Bremen. But I am cautious about focusing too much on this. Experience shows that forecasts often deviate from reality, as we have seen with battery logistics, for example. Nevertheless, we want to invest in promising areas and secure ourselves with less cyclical business

Do you see too many dependencies as a weakness of BLG in the past?
No, I wouldn’t call that a weakness. It’s always easy to say in hindsight what we should have done differently. Nobody could really have foreseen the current economic downturn in the automotive industry. However, we have worked hard over the last two and a half years to broaden our product portfolio and thus reduce our dependence on the automotive industry.

How great was the dependence on the automotive industry, and what is the target value for the reduction?
We have three relatively equivalent divisions, of which the Automotive division, with a turnover of 600 million euros, is completely dependent on the automotive industry. The situation is similar for contract logistics, which also generates around 600 million euros in turnover, of which around 200 million is generated directly with the automotive industry. That is quite a high level of dependency.

Which sectors in particular are now being considered as alternatives?
Consumer goods are a very exciting area for us. Price sensitivity is not so high in the area of high-quality consumer goods in particular, and we are delighted to have acquired the aforementioned well-known cosmetics customer. We want to expand this area further. We can also make full use of our technical expertise in sectors that support the energy transition. Be it in pipe production or in projects in the energy sector – this is where we can make the best possible use of our expertise and make an important contribution. In the automotive sector, we need to become more international. Our customer structure has changed considerably. Where we used to focus almost exclusively on German OEMs, we now see a growing proportion of Asian manufacturers. This is why we need to make our sales activities more global.

How do you deal with the geopolitical uncertainties associated with greater internationalization?
Of course this is a challenge. The German economy’s dependence on China is enormous. Even if there is a lot of political talk of “decoupling”, it is difficult to imagine that sourcing structures will change drastically – unless there are serious geopolitical events. As long as this is not the case, China will remain an important trading partner.

What role does China play in BLG’s internationalization strategy?
China is not currently a market in which we are expanding significantly. We have deliberately focused on other regions where we can gain a better foothold. One example is Eastern Europe. We see great potential in countries such as Poland and Hungary, where the automotive industry is growing strongly. Turkey is also strategically important for us. We have withdrawn from markets such as India and Malaysia in recent years because our activities there have not reached the necessary size to be truly competitive. It is always important to use our resources wisely, and for us this means concentrating on geographical markets in which we can grow sustainably.

What makes Eastern Europe so attractive for BLG?
Eastern Europe is a growth region, particularly due to the expansion of automotive production. Poland is developing very positively for us, and we are planning to expand our activities in Hungary and possibly Romania. The special thing about these markets is that we are not starting from scratch. We are already working with existing customers, particularly from the automotive industry, who are expanding into these regions and can build on these relationships. This creates synergies and makes it easier for us to get started. However, we are not limiting ourselves to the automotive industry. Our aim is to offer a broad portfolio of services in order to be able to react more flexibly to market changes. And we are present in Ukraine and do not want to withdraw.

To be the first company to participate in the reconstruction after the end of the war?
Exactly, Ukraine will have an enormous need for reconstruction after the war, especially in terms of infrastructure. We are already on the ground and want to further expand our presence. Companies operating in the energy infrastructure sector in particular will play a key role. We see great opportunities for BLG here.

What is the current business situation in Ukraine?
This really is an exceptional situation. Despite the war, many of our activities are continuing, albeit under very difficult conditions. Our teams on the ground are doing an excellent job, even if everyday life often seems surreal. There are air raids, people seek shelter and then return to their jobs. The resilience of the people is impressive.

How do you assess the opportunities on the US market, particularly in light of the presidential election and the changes that its outcome may bring?
Where is the crystal ball? I really can’t say. A lot of money is currently being invested in the USA through the Inflation Control Act and other government programs. There is now a kind of special boom and I hope it continues. The USA has shown time and again in recent years that it is good for surprises. I believe that it is certainly helpful and good to be on the ground and in the country in light of Trump’s possible election.

Companies like the DHL Group have ambitious growth targets. What do they look like at BLG?
We have set ourselves ambitious goals and are on the right track. We see a considerable need for investment over the next few years

and decades, particularly at our automotive logistics locations and in the ports. The automation and digitalization of a ship berth alone will cost around 500 million euros. These investments must be generated. It is crucial that both the state of Bremen and the federal government live up to their responsibilities and provide the necessary infrastructure, for example through projects such as the deepening of the Weser. Without these measures, it will be difficult for us to invest in the superstructure, as the current facilities are not designed for the higher and heavier container gantry cranes. This calls for cooperation between the federal and state governments and industry

Could the Schenker takeover by DSV benefit BLG in contract logistics?
In the run-up to the sale, there was a lot of unrest and uncertainty, especially among the people involved and some customers. Now that the sale is official, a wait-and-see attitude prevails. As usual, DSV will press ahead with the integration very quickly. We will have to wait and see what customers have to say and whether they feel comfortable with DSV. Logistics is a people’s business and personal relationships are often crucial. If key people leave, customers might think about switching. We are agile and close enough to the market to take advantage of the opportunities that arise.

BLG’s three main pillars have a relatively stable share of turnover. Will this continue to be the case over the years, for example, will it be possible to maintain the 600 million euro turnover in the automotive sector?
Yes, we assume that we will maintain the 600 million euros in the automotive sector. In the past, we have also tried to gain a foothold in the forwarding business, but this was only moderately successful. That’s why we have abandoned it again. We remain clearly anchored in logistics and are currently examining how we can further differentiate our portfolio in the automotive segment. We see further growth potential here

Where exactly?
In technical services, for example. We are already heavily involved in the traditional handling and transportation business, but new opportunities are arising due to changes in OEM business models such as leasing and fleet business. Vehicles are increasingly being reconditioned multiple times, so we can also service them multiple times. I see great potential here, especially if we bring together all of our service modules – from the seaports and inland terminals to rail and road transportation. We can do even more.