Claes Gotthold, CEO of Veolia Transport Serbia - Lasta is deeply in debt

(Claes Gotthold)

The company Veolia Transport Litas has recently procured 12 new buses made by Ikarbus. On that occasion, in the space of the Pozarevac hippodrome, the global leader in the field of public transport celebrated the fifth anniversary of the acquisition of Litas and the entrance to the market of Serbia.

During its previous five-year investment cycle, Veolia purchased 73 new buses, thus increasing the fleet to 220 vehicles. Investments in the first five years amounted to 14 million euros, and the company now plans to invest additional 3 million euros by the year's end in the acquisition of 25 Neobus buses, which will become part of the Belgrade city transport system.

- In line with the European and global standards, all procured buses are equipped with EURO 4 and EURO 5 engines, which enable a significant reduction of pollution and noise, while providing security and comfort for all passengers. New buses and other investments clearly show that Veolia is a serious investor whose arrival in Serbia benefits all – from passengers who are transported in a safer and more comfortable way, employees and their families, to domestic bus manufacturers, which sell us their new vehicles. The whole Branicevo region will develop much faster once there is a better connection between their different parts – Claes Gotthold, CEO of Veolia Transport Srbija, stresses in an interview for eKapija.

eKapija: After taking over companies Litas and Luv Braca Sarac, do you have plans for the acquisition of another transportation company in Serbia?

- The economic crisis has prevented us from participating in the takeover of other transportation companies. However, the economic situation is improving so that we are now considering the acquisition of some companies. I cannot tell you now with certainty which companies we intend to buy and when, but that will most probably happen during this or next year.

eKapija: Are you still interested in acquiring Subotica-based Severtrans?

- It depends on the tender. The previous privatization process, the one that took place in 2007, was poorly conducted so that we did not buy that company. However, we are still interested and Severtrans is definitely on our list of possible acquisitions.

eKapija: Why was the privatization of Lasta unsuccessful?

- Lasta is the most significant Serbian transportation company. It is a state-owned company with a highly complex structure. Lasta is very attractive but, just like Jat, it is deeply in debt, which is why we are not considering investing in that company at the moment.

eKapija: Are you satisfied with the operations in the Belgrade city transport? Is there any way to improve them?

- Veolia is extremely interested in taking part in the city transport in Belgrade. For that reason we have invested EUR 3 million in the procurement of 25 buses, which will be operating in Belgrade as of August. The Belgrade public transport is a very profitable market and we intend to keep our presence in that domain.

eKapija: Do you have any comment on the adopted amendments to the Law on Road Transport? How will they affect your operations?

- That law brings Serbia closer to the standard respected in the European Union. We expect the application of that law to improve the traffic safety, which is one of our priorities. On the other hand, its application increases our company's costs because we have had to hire a bigger number of drivers since the new law also stipulates the time of rest for drivers.

eKapija: Do you plan to acquire buses powered by natural gas?

- That is not part of our plans. Buses powered by natural gas are increasing the costs. It is necessary to invest not only in new buses, but also in the related infrastructure. On the other hand, the ecological benefit is not significantly bigger than when buses with EURO 5 engines are used.

eKapija: Can you tell us something about your previous business results?

- We are very satisfied. Ever since we entered the Serbian market, we have invested EUR 14 million euros and introduced new safety and ecology standards. We currently employ over 500 workers and, thus, contribute to the economic development of Serbia. The company has recently purchased a total of 73 brand new buses from the domestic bus manufacturers. On the other hand, our profit during the crisis was not big, but neither were losses. Our revenues in 2010 amounted to EUR 12 million and we expect a bigger turnover this year.

M.D.