Siva Narayanan, Director International Operations and Warehousing, Solvay Purchasing & Supply Chain Excellence — North America

https://www.solvay.com
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Siva Narayanan

2016 has been a watershed year. We saw the expected but rapid consolidation announcements of carriers and consortiums, and the unprecedented US presidential election.

The former is going to generate fervor in consolidation of market share and customer segmentation along product lines. In the past, the segmentation has been a regional initiative. However, going forward I expect the initiative to be global as shippers will demand a uniform service offering for their product lines. The service expectations of customers in emerging economies such as China, India, Latin America, South Africa, and Southeast Asia are the same as those in North America and Europe. The carriers’ service strings will be similar. From my discussions with the senior management of major carriers, I gather that they are beginning to focus their energy in crafting out excellence in service delivery and simplification. This will mean delivering value creation on things that matter to the end-user with the assistance of automation.

The new administration is expected to spend and improve infrastructure around the country. This, I believe, will assist in promoting exports of intermediate products such as specialty chemicals from the US to the manufacturing hubs around the world. The US still has a competitive advantage in this sector of the market, because of our low cost of energy and a productive workforce. The continuation of simplification of export processes and the improvements to the roads, bridges, and ports will increase the velocity of products from the manufacturing sites in the hinterland to the port cities. The introduction of inland ports in Greer, South Carolina, serving eastern Georgia, South Carolina, North Carolina, and northeastern Tennessee; and in Murray County, Georgia, serving the hinterland Georgia, Alabama, Tennessee, and Kentucky is hoped to create a nucleus of industrial activity in that area with sustainable transportation to the port cities of Charleston and Savannah.

I am optimistic the industry is on an upward trend. The key is to keep the momentum going with productivity gains and to distribute benefits to all in the industry.