EASTERN EUROPE\\\


Business booms but roads and rails are under strain


Tibbett Logistics has opened three new warehousing locations in 2014 – two in Bucharest for retail and automotive clients, and one in Oradea in the northwest of Romania for a retail client handling both ambient imported product from Western Europe and fruit and vegetables for delivery to the retailer’s regional outlets. Tibbett Logistics provides


intermodal and extensive supply chain management services to the automotive, textiles, retail and other FMCG sectors across Romania and elsewhere in south-east Europe. As well as operating over 80,000 sq m (860,000 sq ſt) of warehousing at 11 locations, the company has a distribution fleet comprising tilt trailers, double- and triple-chamber reefers and container chassis – along with its own intermodal rail wagons. The company says it is also a


pioneer of intermodal transport in Romania. It is the only private operator of a rail container terminal in Bucharest, and is investing in


though. “The Romanian rail transport industry is still suffering from under-investment. Most active intermodal terminals – those that can facilitate the shiſt of freight from road to rail – are under the control of private enterprise (including Tibbett Logistics in Bucharest), while the terminals owned by CFR (Romanian State Railways) are generally unused and in disrepair.” There has been some recent


investment in rail infrastructure, but this is behind plan. A new road-rail bridge linking south-east Romania


“Terminals owned by Romanian State Railways are generally unused and in disrepair.”


developing multi-modal (port- rail-road) transport operations throughout Romania and south east Europe. CEO, David Goldsborough


(above right) says: “The Romanian economy is now experiencing growth. In the field of logistics this is evidenced by the significant shrinkage during


2014 in the


amount of vacant warehousing in the country. This growth is being driven in part by the expanding retail sector. Whereas until 2013, international retailers of food, DIY and electronics focussed primarily on the major cities, these chains are now starting to spread into the smaller towns – those below 150,000 population. There has also been significant recent growth in online shopping –


although


primarily for electronic and household goods. “The automotive components


sector continues to grow in Romania, with companies such as Daimler and Yazaki making large investments in 2014. This sector continues to experience growth in volumes of some 30 per cent year- on-year.” Infrastructure is still an issue,


to Bulgaria has been constructed (the New Europe Bridge), but is under-utilised because the final 50km of track before the bridge has not been electrified. “The station at Curtici, on the border between Hungary and Romania – where most Hungarian traffic enters or transits the country – is being upgraded, but this also remains well behind schedule, and is causing significant congestion and delays on international freight traffic.” Further stretches of highway


have been opened in Romania in 2014, so that the western border with Hungary is now almost completely linked to Sibiu in the centre of the country. Unfortunately, however, construction of the highway/dual- carriageway linking Pitesti (100km northwest of Bucharest) with Sibiu (effectively connecting Bucharest with Hungary) has not started, and it is not expected to open until 2018–19. Goldsborough concludes:


“Connecting the centre of the country to Hungary and the international highway network is seen as critical in attracting further foreign direct investment into Romania. “


Issue 1 2015 - Freight Business Journal Yusen wins Ford business


Yusen Logistics has won a less-than-truck-load collection contract from Ford across Central Europe. The company began working with Ford in 2006, when it was chosen to operate Ford’s Origin Distribution Centre (ODC) or cross-dock in Prague serving its European production plants with consolidated full loads of automotive parts originating in Central Europe. In 2010, Ford opened its second ODC in Budapest and this is also operated by Yusen Logistics. Yusen Logistics now collects production parts and delivers reusable


21


packaging from or to over 240 suppliers spanning southern Poland, the


Czech


Republic, Slovakia, Austria, Hungary, Slovenia and Croatia. John Mitchell, Head of the Automotive


Vertical for Yusen Logistics Europe commented: “We are delighted with the award and the opportunity it provides to add value to Ford’s supply chain. The award strengthens


our automotive network in the region which can only be positive for customers, their suppliers and our suppliers alike.”


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