Romanian Logistics 2013-11-12 - Econet Romania · Romanian Logistics “Facts, Figures and...

Romanian Logistics

“Facts, Figures and Reality”Bucharest, November 12th 2013

ROMEO DUMITRU – Vice-President ARILOG

(Romanian Logistics Association)

Next destination

ROMANIA

ROMANIA ROMANIA -- locationlocation

FIGURES

ROMANIA ROMANIA -- GeographyGeography

FIGURES

Official name : ROMANIACapital : BUCHARESTSurface area : 238 391 sq km

land: 230 340 sq kmwater: 7 160 sq km

Population : 22+ mil. PeopleTime : GMT + 2hLocal currency : LEU (pl. = LEI ; symbol : RON)GDP : 9687+ Euro/capita (2012 est.)

ROMANIA ROMANIA -- StatisticsStatistics

ROMANIA ROMANIA -- StatisticsStatistics

Import volume: $78.85 billion USD (2012)

Import commodities: machinery and equipment, fuels and minerals,chemicals, textile and products, basic metals, agricultural products Import countries: Germany 16.7%, Italy 11.6%, Hungary 8.7%, France 5.9%, China 5.5%, Rusia 4.4%, Austria 4.1% (2010)

ROMANIA ROMANIA -- the second market from CEE, after Polandthe second market from CEE, after Poland

Export volumes: $67.42 billion USD (2012)

Export commodities: textiles and footwear, metals and metal products, machinery and equipment, minerals and fuels, chemicals, agricultural products Export countries: Germany 18.9%, Italy 13%, France 7.6%, Turkey 6.2%, Hungary 5.7%, UK 3.6% (2010)

FIGURES

Next destinationROAD TRANSPORT

Romania – Transport Future Motorways

Source : Romanian Ministry of Transportation

Romania Romania –– Transport Future MotorwaysTransport Future Motorways

DREAMS

Romania – Transport Future Motorways


Romania Romania –– Roads structureRoads structure

DREAMS

FACTS

Romania Romania –– Road transport parametersRoad transport parameters

Carriers’ average COSTS in International traffic :0.87… 0.93 euro/km – breakeven tariff for average

run of 10 000 km/month!

cca 40 km/h – trucks’ average commercial speed

Carriers’ average COSTS in National traffic :0.76 … 0.79 euro/km – breakeven tariff for average

run of 8 000 km/month!

Around 200 000 cargo trucks with authorized weight over 3.5 to

FACTS

Romania Romania –– Road transport utility linksRoad transport utility links

• The Romanian Road Transport authority (ARR) :

http://www.arr.ro

• The Romanian Road Vehicles Registry Office (RAR) :

http://www.rarom.ro

• The Road Carriers Guild (UNTRR) :

http://www.untrr.ro

FACTS

CRYSIS AS CATALYST INTO RESTRUCTURING PROCESS

• The crisis helped the industry to became more sustainable • The transport operators optimized their fleets (read “reducing”)• Many companies who have their own fleet but their core business is not transportation are selling them and outsourced the transport activity. • The small transport operators are creating the clusters or professionals groups in order to offer specialized and complex solutions for clients (forced for surviving).

•A part of vehicles were sent back to the leasing companies.

BAD REALITIES

REALITY

“JALOPY PROGRAM” –renewing the old auto park

Infrastructure “quality”

BAD REALITIES

REALITY

City after a winter war National roads after a winter war

BAD REALITIES

REALITY

City under snow National road under snow

BAD REALITIES

REALITY

Congestion in traffic Theft from vehicles

GOOD REALITIES

REALITY

International Lazar Company - “European Transport Company of the Year 2010"

The prize "European Transport Company of the Year 2010" has been awarded on February 11th, 2010 in Bruxelles , within the framework of a ceremony that got together more than 1200 people, representatives of the haulers, of the transport industry and of the specialized press from the whole Europe. Being in the competition with another 5 finalists from Germany, Sweden, United Kingdom, Belgium and Netherlands, International Lazar Company has obtained a 3rd honorable award, after the representatives of United Kingdom and Belgium.

REALITY

Next destinationRAILWAY TRANSPORT

Romania – Transport Railway Infrastructure


Romania ––

TRANSPORT RAILWAY INFRASTRUCTURE

Length: 10.821km

Unused:

3300km

Rented:

911km

FIGURES

Romania – Transport Railway Infrastructure


Romania ––

TRANSPORT RAILWAY INFRASTRUCTURE

FIGURES

BAD REALITY

REALITY

INCIDENTS OLD AN POOR INFRASRUCTURE

GOOD REALITY

MODERNIZED TRAINS MODERNIZED TRAIN STATIONS

REALITY

WARNING! RAILWAY CRISIS

• Antiquated structure with “0” Investments

• The Railway transport function is “shifting” towards the road transportation

• More and more traditional railway customers cease to use this transportation mode

• The prices offered by foreign companies became more attractive

• Nothing is changed in Transportation Ministry budget

REALITY

GOOD NEWS : CFR MARFA (state owned Cargo Railway Company) is for sale !

Next destination

CONSTANTA PORTCONSTANTA PORT

CONSTANTA PORT - Vital node within the international logistic transport chain

Direct transport services between far east and the Black Sea

Possibility for direct transshipment into river ships

Opportunity to finance infrastructure development projects through European funds

Intermodal connections towards the hinterland (road, rail, iwt, air)

The free “zone regime” of Constanta Port, stimulating the transit traffic towards the hinterland

FACTS

Surface: 3.926 ha

140 operational berths

quay length – almost 30 km

breakwaters – 14 km

capacity – 120 million tons/year

depths between 8 … 18.5 m

The 10th port as growth rate after 2000, placed

before Genoa, Barcelona, Trieste, etc.

Surface of storing area: 2.5 ha – 1600 vehicles (will be extended up to 5 ha – 3,700 vehicles)

• Handling capacity: 110 cars//hour• Annual capacity: 234,000 cars

Operator: Romcargo Maritim

Operational facilitiesOperational facilities for vehicles for vehicles

Direct lines with Fos sur Mer(Marseille), Valencia, Alger, Pireu,Iiyichevsk/DeriinceOperators: CFR–Marfa, Umex, RomTrans

RoRoRoRo--Ferry connections :Ferry connections :

CONSTANTA PORTCONSTANTA PORT

FIGURES

CONSTANTA PORT TRAFFIC

FIGURES

THE BARGE TERMINAL

First stage of the project was finalized in May 2008

Project objectives:Streamline the navigation in the river-maritime sector of the port

Improve IWT infrastructure in the Port of Constanta

Provide prosper conditions for barges convoys to call and be assembled

Quay for barges:1,200m with 7 m depth

Quay for tugs and pushers: 300 m with 5 m depth

Total value of the project:22.5 mil. Euro Financed through a non-sovereign loan from EBRD (67%) and own resources (33%)

CONSTANTA PORT - Development Projects

FACTS

Such a strategy will strengthen the cooperation between the DanuSuch a strategy will strengthen the cooperation between the Danube riparian be riparian countries / Romania is a vital transport node in the Southcountries / Romania is a vital transport node in the South--Eastern part of Eastern part of Europe. Europe.

FACTS

Romania promotes its

STRATEGY FOR THE DANUBEInland waterways transport

The European Commission has now the mandate to elaborate the future strategy for the Danube region

GalaGalattiiBrBraailailaTulceaTulceaCalarasiCalarasiOltenitaOltenitaGiurgiuGiurgiu

The Romanian sector The Romanian sector of the Danube of the Danube -- PortsPorts

The Danube The Danube –– Black Black Sea CanalSea Canal

The Poarta Alba The Poarta Alba ––Midia Navodari Midia Navodari CanalCanal

LengthLength 64.4 km64.4 km 32.5 km32.5 km

Maximum allowed Maximum allowed draughtdraught

5.5 m5.5 m 4.5 m4.5 m

Twin locksTwin locks 2 (Agigea and 2 (Agigea and Cernavoda)Cernavoda)

2 (Ovidiu and 2 (Ovidiu and Navodari)Navodari)

Maximum allowed Maximum allowed convoysconvoys

18.000 to18.000 to 3.000 to3.000 to

Maritime and inland Maritime and inland vesselsvessels

5.000 tdw5.000 tdw 2.000 tdw2.000 tdw

FACTS

Next destination

Warehousing Industry

Romania – Warehousing Industry

No accurate statistics in regards to turnover;No accurate statistics in regards to turnover; ““AA”” Class warehouses : 1.4 + million sqmClass warehouses : 1.4 + million sqm 890 000 sqm located in Bucharest area890 000 sqm located in Bucharest area 10 10 –– 15 % vacancy rate15 % vacancy rate 3.2 3.2 -- 4 Eur/ sqm rent for 2 500 4 Eur/ sqm rent for 2 500 -- 10 000 sqm10 000 sqm

(even lower for areas as Arad, Oradea, Timisoara (even lower for areas as Arad, Oradea, Timisoara etc.)etc.) lower prices for higher surfaces or locations farer lower prices for higher surfaces or locations farer from big citiesfrom big cities service charge : 0.70 service charge : 0.70 -- 0.95 Eur/sqm0.95 Eur/sqm contract duration : 3 contract duration : 3 -- 5 years5 years FIGURES

Class A Logistics Class A Logistics Spaces concentration :Spaces concentration :The The ““polepole”” is the triangle Bucurestiis the triangle Bucuresti--PloiestiPloiesti--Pitesti Pitesti

FIGURES


Class A Logistics Class A Logistics Spaces concentration :Spaces concentration :Renting tariff structureRenting tariff structure

FIGURES


Class A Logistics Class A Logistics Spaces Spaces -- Bucharest supply synopsis :Bucharest supply synopsis :

FIGURES


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Total supply(sq m) 110,000 185,000 300,000 530,000 800,000 845,000 870,000 870,000 870,000 885,000

Annual supply (sq m) 75,000 115,000 230,000 270,000 45,000 25,000 0 15,000 0

Vacancy rate(%) 1 - 2 1 - 2 2 - 4 2 - 4 4 - 6 10 - 12 11 - 13 10 -12 12 - 15 10 – 14*

Prime rents(€ per sq m) 6 - 6,5 5 - 5,5 4,5 - 5 4,25 - 4,5 4,15 -

4,5 3.9 - 4,3 3.85 -4.25 3.7 - 4.153.65 - 4.1 3,5 – 4.0

Class A Logistics Class A Logistics Spaces Spaces -- Ploiesti supply synopsis :Ploiesti supply synopsis :

FIGURES


2008 2009 2010 2011 2012 2013*

Total supply (sq m)

25.000 51.000 81.000 116.000 131.000 146.000

Annual supply (sq m)

26.000 30.000 35.000 20.000 15.000 10.000

Vacancy rate (%)

3% 3 - 5% 17% 15% 14% 12%

Prime rents(€ per sq m)

4 - 4,5 3,9 - 4.3 3,8 - 4,15 3,6 - 4,0 3,5- 3,9 3,4 - 3,8

REALITY


Strong points of Romanian logistics :

• Almost all major European logistics providers have subsidiaries/branches• Modern management driven• State of the art warehousing structure• “Seasoned”(within a harsh logistics environment) and more and more professionalized personnel (we have more and more ELA certified (Junior and Senior Level) SC&Logistics Managers

FACTS


Romania Distribution Concepts

Due to geographical specifics, most of the companies have chosen the 2 warehouses concept :

- one in Transylvania (Center, W or NW of Romania)

- one in South of Romania

Single warehouse => between 8% and 20% higher distribution costs (depending on warehouse location)

FACTS

LAST STOPQ&A

FACTS

Romania Romania –– ““Hot potatoesHot potatoes””

Corruption in Romania ?

Predictability ?

Taxing ?

YOUR concerns ?

ENDE

Vielen Dank für Ihre Aufmerksamkeit !

Romanian Logistics 2013-11-12 - Econet Romania · Romanian Logistics “Facts, Figures and...

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