April 5, 2004
U.S.-flag Maersk unit announces restructuring
Arlington, Va., based U.S.-flag operator Maersk Line, Limited (MLL) today announced what it called "a sweeping restructuring of its organization to meet the evolving needs of today's Department of Defense." However, with characteristic Maersk reticence, it gave scant details of what the restructuring actually involves.
"The Department of Defense has changed considerably Ð and rapidly Ð to focus on new and emerging threats," said John Reinhart, MLL's Chief Executive Officer. "To continue to build our longstanding partnership with the U.S. military, we had to change as well."
Reinhart cited several new "paradigm shifts" in the military that drove MLL's restructuring including:
1) an increased focus on joint operations;
2) a higher percentage of uniformed personnel dedicated to contingencies;
3) improved management of supply chains; and
4) increased spending on technology and integration of IT services into solutions.
"We have designed a new organization to ensure that in each one of MLL's business units, we do not simply provide services, but solutions," said Ken Gaulden, Senior Vice President. "With these changes in place, we will be better able to serve the DOD by channeling and leveraging our global resources in the integrated defense logistics and vessel services markets. By establishing a business unit structure and placing increased focus in our business development organization, we will be poised to bring more of our substantial logistics capabilities to the defense marketplace."
During Operation Iraqi Freedom, Maersk Line, Limited delivered a greater volume of essential supplies to the theater than any other carrier.
"Our first priority with this action is to ensure we deliver the best possible service to the U.S. government," said Reinhart. "The team we've assembled will help us do just that."