Transport & Logistics 2022 by CorD Magazine

Transport & Logistics 2022

INTERVIEW TATJANA MATIĆ, SERBIAN MINISTER OF TRADE, TOURISM AND TELECOMMUNICATIONS

Huge Potential To Develop Postal Services By investing in reliable e-commerce web platforms for postal operators, constructing logistics capacities and procuring delivery vehicles, but also opening new parcel warehouses and installing packaging machines, the conditions are created for Serbia to gain an even more developed postal services market

he volume of e-commerce grew exceptionally during the previous period. This has led to changes in both the operations of traditional retailers who responded to new trends and to the emergence of major e-commerce platforms such as, for example, Shopster and Ananas. “The development and increasingly com-

Transport & Logistics 2022

monplace applying of IT in everyday life has also impacted on changing the habits of consumers who are increasingly buying via the internet,” says Serbian Trade, Tourism and Telecommunications Minister Tatjana Matić. According to the data of the National Bank of Serbia, NBS, Serbia’s central bank, the number of payment transactions realised

for the purchase of goods and services via the internet grew in 2020 by 103.76% in dinars (9.42% in euros) compared to 2019 and by 59.66% in dinars (35.12% in euros) in 2021 compared to 2020. When it comes to the value of payment transactions realised for the purchase of goods and services via the internet, in 2020 the growth in dinars compared

SUPPORT The development of various online sales platforms represents a chance for small companies that often lack the capacity for online sales of their products

POTENTIAL bearing in mind that logistics support is an essential element of e-commerce competitiveness, it remains essential for Serbia to achieve significant development in this field

CONTROL Although fraud is still committed by unregistered traders, it now occurs much less frequently thanks in part to the contribution of all competent inspection bodies and institutions

to 2019 was 81.46%, while there was a drop of 8.75% in euros, while in 2021 there was an increase of 72.37% in dinars and 78.51% in euros compared to 2020. “Considering the fact that e-sales represent an extremely effective way of expanding business activities, companies are adapting to this trend, particularly large companies; almost all major companies have a website, while a somewhat lower percentage of medium-sized and small companies have one. In comparison to previous years, we see significant progress

It is essential to secure the infrastructure for the further development of new commercial services, such as investments in processing centres nationwide in Serbia and in automated technologies for the processing and sorting of shipments among small businesses in this sense. All told, use of websites by most companies in Serbia remains limited and primarily has an informative function,” says Matić, adding that the development of various platforms certainly represents a chance for small companies that often lack the capacity for online sales of their products. We are simultaneously witnessing the emergence and expansion of a palette of postal services. From the perspective of your ministry, what is it important to provide for this segment of the market to develop, in terms of infrastructure? - It is essential to secure the infrastructure for the further development of new commercial services, such as investments in processing centres nationwide in Serbia and in automated technologies for the processing and sorting of shipments. The aim of these activities is to

enable the fast and high-quality processing of a large number of different types of shipments and to enable the directing of deliveries in the appropriate direction. With this in mind, it is also essential to invest in new delivery vehicles, such as vans, green vehicles, mopeds and bicycles, but also in the opening

of new parcel warehouses and the installing of packing machines in high-traffic areas, in order for users to more easily and quickly receive their deliveries. Likewise, by informing citizens about the advantages of secure e-shopping via postal deliveries and investing in postal operators’ reliable

Transport & Logistics 2022

INTERVIEW

With this law, terms and principles in the field of electronic commerce are defined and the responsibility of information society service providers that mediate in the provision of services is regulated. How often does your Postal Service Inspection Group have to respond to fraud in this field today? - Unfortunately, fraud is still committed by unregistered traders, but that occurs much less frequently than it did during the period immediately before and during the Covid-19 pandemic. The constant work of all competent inspection bodies and institutions in the country, as well as the Department for Inspection Supervision in the domain of postal services, contributed to reducing occurrences of fraud. According to the requirements of inspections and the competent authorities, such as the Prosecutor’s Office and the Ministry of Internal Affairs, these services receive essential data and evidence regarding those who commit fraud by advertising via social networks and delivering goods through postal operators. Our inspectors obtain data and evidence, but often also participate in joint inspections, such as those with the market inspection service, Ministry of Internal Affairs etc.

web platforms for e-commerce, the conditions are created for an even more developed postal services market in Serbia. How much is the e-commerce sector driving the development of logistics capacities? - According to theWorld Bank report “Connecting to Compete”, Serbia ranked 65th in 2018 according to the LPI (Logistic performance index). This marks a significant improvement compared to 2016, when Serbia ranked 76th. Still, bearing in mind that logistics support is an essential element of e-commerce competitiveness, it remains essential to achieve significant development in this field. Food delivery platforms and, to a lesser extent, platforms for passenger transportation, have stood out as separate segments. How do you classify them, given that they are intermediaries in trade and are very often registered as marketing companies or as part of the ICT sector?

Transport & Logistics 2022

The arrival of large chains on the Serbian retail market has increased demand for labour, and we hope that further growth in competition will encourage the development of operations and increases in employees’ earnings - Online platforms that are intermediaries in the provision of services are considered as providers of information society services in the sense of the Law on Electronic Commerce, or according to the EU Directive on Electronic Commerce with which our law is harmonised. According to the definition, an information society service is a service that is provided at a distance and encompasses, among other things, commerce via the internet and the enabling of electronic searches for services.

We are increasingly facing labour shortages in both trade and the postal transport sector. How concerning a problem has this become and how can it be solved? Is the solution in higher wages in this sector or reliance on foreign labour? - This problem has been present in the sector of commerce for several years already. The arrival of large chains on the Serbian retail market has increased demand for labour, and we hope that further growth in competition will encourage the development of operations and increases in employees’ earnings. Postal services are also short of labour, but the situation isn’t alarming. On the one hand, we have Public Enterprise Post of Serbia, which has over 13,000 employees and an open call for new employees on its website, as well as many work applicants. On the other hand, the private sector that deals exclusively with commercial services has to date resolved the shortage of direct service providers, such as couriers, by cancelling parcel deliveries on Saturdays, while unburdening delivery employees with the installing of packaging machines and the opening of parcel warehouses etc.

Transport & Logistics 2022

BUSINESS

BOGDAN GAVRILOVIĆ, SALES MANAGER, WORLD TRANSPORT OVERSEAS (WTO)

Expanding Operations World Transport Overseas (WTO), which is headquartered in Eastern Europe and has branches in Bulgaria, China, Croatia, Greece, North Macedonia, Serbia and Slovenia, was the 2020 winner of Bulgaria’s Company of the Year award in the service sector and represents one of the fastest growing companies in the logistics sector

y continuing in accordance with the VISION 2030 plan, the decision was adopted to expand the group. We should be opening offices by the end of the current year in Taiwan, Korea and Ningbo [Chinese industrial port city], as well as new Black Sea basin offices in Romania, Georgia and Armenia - announces WTO Sales Manager Bogdan Gavrilović.

The WTO opened a branch in China in 2020 and representative offices in Skopje and Thessaloniki in 2021. Are you planning to expand further? - We’ve already opened offices in Priština and Piraeus this year, which will certainly contribute to even higher quality services and more competitive prices. We are particularly proud of the opening of our office in the Port of Piraeus, which has already been operating successfully for three months and through which we will be able to offer our clients an express service, in the areas of both FCL and LCL shipments. With the opening a new direct maritime collective line from the Port of Tianjin to the Balkans, we have continued implementing our expansion strategy, as one of the leaders of the Central and Eastern European market. Our aim is to provide the possibility of more affordable and faster supplying of goods from the Far East to clients in Serbia and the wider region. In addition to this, another important factor in the improving of services is the new line for supplying goods from the Far East to Southern, Western and Central Serbia, as well as transport to Belgrade itself. This is a service that operates via the Port of Thessaloniki and intermodal transport via Niš to the final destination. This service has great potential and possibilities, and we will

Transport & Logistics 2022

company, but first and foremost to our clients, because we will be able to offer them additional, better-quality services around the world, under even more favourable terms. We assume that last year’s figures and reports have been underscored and are ready to present. Are you satisfied? - The group’s total turnover for 2021 was a record-breaking 53 million euros. When it comes to the number of TEUs [twenty-foot equivalent units] transported, in both import and export operations, the total amount exceeds 40,000. We are also recording a major upsurge in containerised transport (LCL), i.e., in the number of cubic metres of goods delivered via our main transhipment ports of Varna, Koper and Thessaloniki, which stands at 83,000 cubic metres. Air transport was our main area of investments and the focus of the group in the previous period, which is best reflected in our transporting of more than 1.5 million kilos of goods during the previous year.

Our aim is to provide the possibility of more affordable and faster supplying of goods from the Far East to clients in Serbia and the wider region strive to bring it to life as soon as possible, thereby unburdening other supply lines. We are proud that we’ve expanded our cooperation with our long-term partner JAS and become its exclusive agents in Thessaloniki and Skopje. This kind of partnership with such a worldwide freight forwarding company brings numerous benefits to our

Are relations with employees still among the most important factors for WTO? - It is common knowledge that WTO employees have constantly undergone supplementary training and additional business specialisation since the opening of the office. The latest such training relates to work with the previously introduced Microsoft Dynamics NAV program, which we are successfully concluding while simultaneously preparing for the introduction of the new CRM solution. WTO has a constant need for new high-quality and highly educated personnel, which we also present at the employment fairs we often participate in.

VELIMIR KUZMANOVIĆ, CEO, NTS INT

BUSINESS

NTS Applications Save Time & Fuel NTS International is a company that’s spent more than 16 years developing and delivering customised software solutions to support the managing of transport and logistics operations. Operating from five centres, NTS INT has more than 50 employees, while its database includes over 2000 companies specialising in various areas The full visibility of fleet operations and other transport activities – in real time and via historical overviews – that’s provided by NTS solutions supports managers in their decision-making processes, operational planning and management, optimisation, analytics and the control of transport and logistics processes. All data is available on the NTS Desktop, NTS Mobile and NTS@web applications, which you can access at any time and wherever you happen to be from a computer, mobile phone (Android and iOS platforms) or other mobile device, which is particularly important today, when we often work from home and out of the office. NTS also constantly monitors trends in

nder conditions of pronounced fluctuations in fuel prices, reduced traffic safety and high levels of pollution, it is essential that transport and logistics processes receive high-quality support that ensures the visibility of fleet operations and other activities in real time. That very support is provided for many companies by NTS solutions. Accelerated digitalisation requires that companies adapt rapidly. How do NTS solutions help companies remain competitive on the market? - We create all solutions under our own direction, from analysis of project requirements, via design and implementation, to testing and maintenance. These are modular solutions, with the possibility of being upgraded and integrated into other software solutions. They are intended for all companies, regardless of their core area of activity or the number and type of vehicles they own.

the fields of IT and logistics, developing new solutions that you can get informed about via our website and social media accounts. Pronounced fluctuations in fuel prices, reduced traffic safety and high levels of pollution are just a few of the challenges faced on a daily basis. Does NTS also have a response to handle them? - The NTS Fleet management system enables the measuring and monitoring of the amount of fuel in a vehicle’s tank in real time, thanks to a device installed in the vehicle that’s connected to its on-board computer. Data related to the time, place and amount of fuel poured into a tank assists fleet managers in determining if it is really the amount of fuel paid for. Similarly, the moment fuel registers as being withdrawn from

a tank, our system informs the manager and thus enables them to react in a timely manner. Another NTS application enables route planning and the identifying of the best routes to desired locations. The additional ability to send route plans with simple instructions to drivers on their mobile devices reduces the number of kilometres traversed, which has a direct impact on reducing fuel consumption and savings on transportation costs.

NTS constantly monitors trends in the fields of IT and logistics, developing new solutions that you can get informed about via our website and social media accounts It is necessary to pay special attention to drivers whose conduct determines the safety of all road users. A driver’s specific driving style can have a significant impact on damage to vehicle components and increased fuel consumption, which is a direct cause of harmful emissions. With the aim of reducing fuel costs and extending vehicle longevity, while at the same time ensuring socially responsible behaviour in the area of environmental protection, we created the NTS Driver Score solution, with which companies motivate their drivers to change their bad driving habits.

Transport & Logistics 2022

BUSINESS

IVAN MILIĆEVIĆ, HEAD OF INNOVATION & DEVELOPMENT OF LOGISTICS

Strategic Acceleration Through Development Of Logistics And Regional Connectivity The connectivity degree of countries in the region, which essentially implies the flow of people and goods, is a key development parameter. Individual markets have limited capacity and can achieve better optimisation and efficiency only if they are integrated logistically

espite global challenges in the field of transport, logistics and supply chains, Nelt’s results are impressive. Mr Ivan Milićević speaks with CorD Magazine about development plans, how to realise them and how important company values are for achieving common goals.

Why is it more important to you how you achieve your business success than what the numbers show? - That’s a question of personal integrity and responsibility, which in turn is the basis of the company’s integrity. How something was achieved, not just what was achieved. Success comes as a result of agreeing not to compromise on core values. Values define how we treat each other, our customers and partners, together with the company itself and the local community. That is why our strategy named Accelerate 2025, which aims to improve business in terms of distribution, logistics and Nelt’s brands, is based on a healthy organisation and values. Five years ago you opened your intermodal terminal in Dobanovci. Has it met your expectations and is there a need to expand its capacity? -Over these five years, we have overcome many challenges and learned a lot, and Nelt’s Intermodal Terminal, or dry port as it is increasingly called, has become synonymous with the connection of Belgrade, Serbia and the region with global logistics points, ports in the Far East and around the world, showing Nelt’s impact on developing our surroundings. Our expectations have been met, exceeded

Transport & Logistics 2022

- Nelt’s regular road transport routes between our logistics centres in Serbia, North Macedonia and Montenegro improve market connectivity and meet the needs for the transport of small quantities of goods. We receive shipments from clients every day from any location in Serbia. Collective transport is organised for Montenegro three times a week, on Tuesdays, Wednesdays and Fridays, and for North Macedonia once a week, on Thursdays. We also organise fast customs clearance in Danilovgrad, Podgorica and Skopje. Delivery is within 24h/48h from the day of customs clearance, throughout the territory of Montenegro and North Macedonia. The goods are insured during the entire journey, so anyone using this service does not have to worry about the truck, insurance, papers, customs.

After continuous investment in our Intermodal Terminal in Dobanovci, we are rapidly preparing to open a new dry port that we will make available to industry in Serbia and the whole region, together with our partners even. That is why, after the latest investment in expanding the capacity of the Dobanovci intermodal terminal, we are rapidly preparing to open a new dry port that we will make available to industry in Serbia and the whole region, together with our partners. The campaign for collective transport Serbia-Montenegro and Serbia-North Macedonia is underway. What does this service provide?

Nelt has decided to install solar power plants at most of its facilities. Where are you with these? - The construction of solar power plants is one of the strategic initiatives that we are carrying out now. We are currently designing and building solar power plants with a total capacity of 4,800kW, that’s 4.8MW on facilities in Serbia and 300kW in North Macedonia, a total of approximately 5MW. Nelt Group will continue building solar power plants with the priority goal of covering its entire electricity consumption, through a buyer-producer model. We look forward to changes in legislation that will enable even greater improvements and further investment in facilities for the production of energy from renewable sources.

Transport & Logistics 2022

COMMENT

Transport And Logistics Need Innovation Despite the pandemic, labour shortages, lack of transport and warehouse capacity, uncertainty in supply chains, rising prices, inflation, trade wars and armed conflict between states, the transport and logistics sector in many countries is experiencing growth, primarily thanks to the digital transformation. Logistics and transport service providers believe that this trend will continue, with the aim of meeting the growing needs and expectations of consumers

THE ELECTRIC GOODS VEHICLE MARKET HAS TRIPLED Data from IHS Markit for Europe excluding the UK shows that 346 new electric delivery vehicles with a load of more than 16 tonnes were registered in 2021. Although this number

Transport & Logistics 2022

sounds small for the whole of Europe, the growth rate of 193% compared to the previous year is incredible. Volvo, just one electric truck manufacturer, received orders and letters of intent in 2021 for the purchase of more than 1,100 trucks from 20 countries around the world. Manufac-

turers of these vehicles believe that offering zero-emission electric transport is becoming a key competitive advantage. Most electric trucks in Europe have been sold in the richest countries, including Switzerland, Norway, Sweden, the Netherlands and Germany.

TOP 5 TRENDS SHAPING THE LOGISTICS AND TRANSPORT INDUSTRY Organisations in the logistics and transport industry will have to embrace cutting-age technologies to design and sustain supply chain solutions of tomorrow. Here are five trends that will shape the future of the logistics and transport industry. 1. Robotic Process Automation Robotic process automation will help eliminate manual tasks, boost order management, improve after-sales service and alleviate labour shortages, while enriching customer experience and enabling business agility.

WAREHOUSE CHARGING POINTS ARE THE FUTURE OF BUSINESS So far, parcel-delivery vans have made up most of the growth in the commercial electric-vehicle fleet. But large-scale are developing the technology for heavy-duty goods vehicles, adding pressure to develop the charging infrastructure. Companies planning to electrify their delivery operations are looking to turn their warehouses into hubs for charging their growing fleets of electric trucks and vans. Industrial real-estate developers say they have been receiving more requests to install charging stations at distribution centres, a sign that logistics companies are preparing for a shift in the power behind transport amid elevated fuel prices and a drive to rein in carbon emissions. Installing chargers at warehouses, however, carries new costs and complications for distribution operations. Warehouses typically have no fuelling stations on site because drivers can generally fill up on diesel at the wide network of filling stations across the country. Adding charging capabilities means ensuring there is enough power and space available for trucks and vans to charge up without impeding freight-handling operations.

2. Artificial Intelligence AI-powered systems will not only help organisations optimise daily operations, they can also help in predictive and preventive maintenance, improve procurement and planning, optimise fuel consumption and pave the way for substantial inventory optimisation.

Transport & Logistics 2022

COMMENT and recommending best routes for rapid delivery of goods between warehouses and to customers.

3. Drones Enabling delivery through drones will become a popular choice to improve the efficiency of last mile delivery while reducing costs. With enterprises like FedEx, Amazon, and DHL already using drones for delivery, we will soon see many more companies join the bandwagon to improve the speed and efficiency of delivery.

5. IoT-led Sustainability IoT-led innovation will allow organisations to unlock new value while giving them greater control over their supply chains. They will eliminate waste to optimise energy efficiency, decision-making, the customer experience and the supply chain.

4. Autonomous Vehicles Self-driving, autonomous vehicles that can operate without human presence will help the sector navigate traffic congestion, improve driver safety, lessen carbon emissions and curtail the overall cost of transport. They will also help reduce the rate and impact of accidents, while detecting obstacles, monitoring engine conditions,

REAL ESTATE MARKET FOR LOGISTICS SET TO GROW According to a new report by Buck Consultants International, the European logistics market is set for another year of growth, as companies ramp up capacity to meet booming e-commerce delivery demand and nearshoring activities in order to navigate mounting supply chain challenges.

Transport & Logistics 2022

Covid-19 has not affected logistics real estate take-up volumes across Europe. The fast growth of e-commerce and the build-up of inventory to cope with supply chain disruptions favour the growth of warehousing. Accommodating the growing demand for logistics services will, however, bring challenges. These include the complex journey of digitalising operations and the lack of warehouse personnel. The lack of personnel is becoming an important hurdle for further growth of the logistics sector and related logistics real estate. In many hotspot logistics regions demand for labour is higher than supply. There are three solutions to this: ensuring employers remain attractive for their staff, looking for migrant workers and accelerating automation and the use of robots.

NEW LOGISTICS SERVICES FOR STRONGER SUPPLY CHAINS In the challenges faced by its logistics sector, Serbia is similar to the rest of the world and even the most developed Western countries. The pandemic, labour shortages, lack of transport and warehouse capacity, rising prices, inflation, trade wars, armed conflict between states and uncertain supply chains are just some of the problems we are facing. Fortunately, however, the logistics sector has plenty of room for business improvement, reducing costs and making savings. Experts agree that the solution to many of the challenges can be sought in the introduction of new logistics services, solutions and technologies, in digitalisation and automation of business, in innovations in the environmental, energy and security fields, and in the application of the most modern tools, algorithms, advanced analytics and artificial intelligence, because good logistics and well-developed supply chains are crucial to the successful operation of the economy and the functioning of society. SEEKING SOLUTIONS FOR THE DRIVER SHORTAGE Germany’s Federal Association for Road Transport, Logistics and Waste Disposal (BGL) has put forward another proposal to solve the country’s acute driver shortage: anyone with a drivers’ license should be allowed to drive vehicles up to 12 tonnes. Germany currently lacks 80,000-100,000 truck drivers, mainly due to poor wages, poor working conditions, separation from family, traffic jams, tight delivery deadlines, stress... The situation is likely to become even worse in the coming period, as more people leave the profession than take it up. If nothing new is done in the meantime, the shortfall could reach 230,000 in ten years. Professional drivers’ associations and transport managers think that the problem could be solved by allowing anyone with a driver’s license to drive trucks of up to 7.5 or even 10 or 12 tonnes. They also think that simplifying the procedure for extending the HGV license for drivers over 50 years of age would be helpful.

Transport & Logistics 2022