BLUE LANTERN: PRE-LICENSE END-USE CHECK ON

UNCLAS VIENNA 001726

SIPDIS

SENSITIVE

DEPT FOR PM/DTCC (STITZIEL)

E.O. 12958: N/A
TAGS: ETTC KOMC AU
SUBJECT: BLUE LANTERN: PRE-LICENSE END-USE CHECK ON
APPLICATION 05-960664

REF: STATE 073936


1. (U) EconPolCouns and Poloffs met on May 20 with
Spedition Welz representatives Andreas Praehauser, deputy
manager for customs procedures, and Rainer Wirthenstaetter,
director of logistics, at the firm's customs office on
Franz-Sauer-Strasse 48 in Salzburg. Praehauser and
Wirthenstaetter provided the following information in
response to ref questions.


2. (U) Background on Spedition Welz

-- How long has the company been in business?

Spedition Welz, officially known as Welz Internationale
Spedition GmbH, was founded in 1924. It is headquartered in
Salzburg, has over 450 employees worldwide according to the
company website, and is one of the largest Austrian freight
forwarding agents. The company offers a full range of
international logistical services for all types of goods,
including chemicals and other hazardous materials. These
services include arranging warehousing, intermodal (air, sea,
rail, truck) transport, and customs clearance, a specialty
area for Welz.

Spedition Welz, according to Wirthenstaetter, became part of
the Austrian Quehenberger Logistics Group in January 2000,
which, itself, is part of the Luxembourg-based firm Thiel
Logistics and Services. In 2004, the German firm Quant
acquired nearly half of Thiel. Through this conglomerate,
Spedition Welz has an estimated 172,000 square meters of
covered warehouse space in over thirty Austrian locations,
according to its website, with some 32 branch offices
worldwide.

-- Who are the company's typical customers and where are
they located?

Spedition Welz has a global customer base. It is
particularly active, however, in Eastern and Southeastern
Europe (including Russia, Belarus, and Ukraine) where it has
nearly fifty branch offices.

-- Does the company have an established, legitimate customer
base?

The company has a large, reputable customer base. For
example, according to Wirthenstaetter, the Austrian energy
drink producer Red Bull is Spedition Welz' biggest customer.

-- What kind of records does the company keep?

According to Praehauser, Spedition Welz keeps written copies
of contacts with its clients. Welz also offers access, via a
password, to their online system, where customers can track
shipments and request logistical services.

-- What is Post's assessment of Welz' on-site security?

According to Praehauser, Spedition Welz stores the munitions
it handles in a special customs facility with 24-hour
security coverage. Emboffs did not tour this facility, which
is not co-located with the office where we met with
Praehauser and Wirthenstaetter.


3. (SBU) In Post's view, Spedition Welz is a reliable
custodian of United States Munitions List items. We saw no
indication of a connection to the activities mentioned in
intelligence reporting.


4. (U) Contact Information

Andreas Praehauser
Deputy Director for Customs Proceedures
Quehenberger Logistik AG
Handelszentrum 3
A-5101 Bergheim/Salzburg
Tel: 43 (0)662 46 80 372
Fax: 43 (0)662 46 80 370
andreas.praehauser(at sign)quehenberger.at

Rainer Wirthenstaetter
Director, Logistics
Quehenberger Logistik AG
Franz-Sauer-Strasse 48
A-5020 Salzburg
Tel: 43 (0)662 4680 1785
Fax: 43 (0)662 4680 1709
Mobile: 43 (0)664 543 41 97
rainer.wirthenstaetter(at sign)quehenberger.com
Brown