Having entered the domestic market in March 2007, services operator CEVA logistics - a top five international player with 6.3bn-euro global turnover, forecasts domestic turnover worth above 50m euros in the next five years, in the wake of aggressive growth.
"We plan to grow organically on the Romanian market and for the next four years we're not considering any acquisitions. In the next five years, we could reach turnover of 50 to 100m euros, depending on the way we develop," said John Pattullo, CEO of CEVA Logistics. Thus, unlike other competitors such as Schenker, which strengthened its presence in Romania by acquiring Romtrans, or Gefco, which is also mulling acquisitions, CEVA Logistics wants to grow independently.
CEVA Logistics, owned by Apollo Management investment fund, took over the logistics operations of TNT and in 2007 bought EGL group. In Romania, the company arrived in March 2007 and posted 1.4m euros last year. This year, the company wants to reach 3.5m-euro turnover and in 2009 hit a 20m-euro figure. Development in Romania will come as a result of market expansion and a rising number of customers.
"We intend to provide transport and logistics in Romania to a large part of our international customers (...)," said Pattullo. At the same time, the company plans to boost the area of logistics centres, as it holds warehouses only in Bucharest now.
CEVA mainly operates road shipments in Romania, but is also interested in rail transport. The company does not have its own car fleet or logistics centres. "These are now subcontracted, but in the future we'll invest in these assets as well. Now, investments are focused on personnel," said Pattullo.
He considers the Romanian market will keep up its growth rate in the following years, but says the positive evolution will depend on infrastructure and productivity. "(...) Globally, our profit margin revolves around 5.5%, and in Romania I believe we'll reach this level," said Pattullo.
The CEE region is witnessing robust growth on the segment of logistics and transport. "(...) We have clients looking toward the CEE region and many companies are shifting logistics activities from Western to Eastern Europe".
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