Dragan Simovic, managing director of Gebruder Weiss Serbia - We have big plans and investments for our second decade in Serbia

Dragan Simovic (Photo: CorD/Z.Petrović)

The logistics provider, Gebruder Weiss, for the fourth year in a row succeeded in increasing profit which in 2013 reached EUR 1.2 billion, up 3.3% from 2012. In Serbia, the results are even better; the profit totals some RSD 2 billion and the profit growth compared to 2012 amounts to 16%.

This year, Gebruder Weiss Serbia is celebrating its big jubilee, ten years of successful business. The biggest challenge for the year to come is the implementation of the planned investment of EUR 5.5 million into capacity expansion.

Before the celebration in Belgrade, in his interview for eKapija, Dragan Simovic, General Manager at Gebruder Weiss Serbia is speaking about results, plans for the upcoming period and potential of joining of logistics companies in the Southeast Europe.

- Gebruder Weiss Serbia headquartered in Dobanovci and a branch office in Leskovac and currently employs 160 people. Ina short period of time we have become recognizable brand in Serbia and one of the market leaders in logistics and transport. We are proud of the fact that in April we are celebrating ten years of existence in Serbia. The result of our business is, among other things, a new investment of EUR 5.5 million into logistics terminal capacity expansion - Simovic says at the beginning of an interview for eKapija.

eKapija: What is the atmosphere and with what kind of results are you celebrating 10 years of work?

(preliminary design of the future logistics center)

- Today, Gebruder Weiss is in a position to differ than its market competition with extremely high service quality. The secret of success of Gebruder Weiss Serbia is its focus is on clients and their needs with special attention to reliability, quality and commitment to deadlines and obligations. One of the pre-requisites is quality and highly-professional staff.

When it comes to services, we provide all kinds of solutions in complete and partial loadings, from the most simple to the most complex transport concepts (JIT and 'just in sequence'), through collective transport through regional network outside and towards neighboring countries as well as common traffic from and to all European countries through Gebruder Weiss network. When it comes to logistics solutions, all kinds of warehousing, additional services (VAS) as well as complex solution which comprise all kinds of road traffic with storage are provided.

eKapija: When you take a look at the past, which are the crucial moments for the company?

For Gebruder Weiss, 2009 is very important when the merging with Eurocargo was carried out.

Due to constant wish to increase safety in our warehouse and premises, we opted to become the TAPA organization member (Transported Asset Protection Association), which provides companies such as Gebruder Weiss an option to fight against criminal in transport by using well-distributed network. In 2013, we received TAPA certificate.

This year, our company became one of the FIC members which created even tighter connections with more than 130 foreign companies which operate in Serbia with the same objective – improvement of business environment through experience exchange and overcoming of difficulties which occur when doing business in our country.

eKapija: What were the results in 2013 and what is the forecast for 2014?

- The results in 2013 were extremely good and confirmed the growing trend we record during the previous years. Generated profit in 2013 was a bit higher than RSD 2 billion, also profit growth in 2013 compared to 2012, totaled 16%. In the first two months this year, the company has been generating as good business results as in the same period in 2013 so this year we are expecting to generate at least the same result as we did last year.

eKapija: What are the problems you encounter in business?

- Transport services have always been exposed to strong cost pressure which is connected to fuel and toll prices. Also, complicated customs procedures delay transit times this increasing production costs.

Transport market is insufficiently developed with a number of small transporters who are able to offer services significantly below economical prices and thus generate unfair competition.

When it comes to storage logistics, there is an absence of conscience about the advantages of outsourcing. One of the reasons for this kind of a situation are companies which have an old way of organization and their own capacities so they are forced, due to old habits and social factor, to continue with its own logistics. The second, not less important reason is a big offer of storage space within companies that went bust which can be rented at low prices as well as cheap labor force. Despite the quality of the facility and standard, price is still the aspect which is decisive.

Apart from that, economic crisis and low economic activity greatly influence condition in logistics industry. Low purchasing power of citizens negatively reflects on profit of trade chains which then generates pressure on logistics providers in a sense of price decrease.

eKapija: Are you planning new investments, projects and hires?

- Our biggest challenge next year will be successful implementation of the investment into capacity expansion. Namely, this year, we are planning to expand existing terminal in Dobanovci and to increase storage capacities (on some 9.000 m2), office space (1.300 m2), as well as traffic areas.

eKapija: Last year, Serbia generated a record export. Did it affect transportation prices?

- Since the record export was generated first of all because of car industry FAS which is specific in requirements and also focused on specific directions, I would not say that export increase affected decrease in transport prices but that they changed as they were during previous years, i.e. the trend of pressure on decrease of transport costs which has existed as of 2008 continued.

eKapija: What are the challenges modern traffic encounters? How is it possible to organize integrated traffic and logistics solutions in order to provide economical, safe and environmentally acceptable kinds of goods transport?

- Gebruder Weiss is a leader in sustainable business. In that sense, we continuously invest in more economical solutions which do not endanger environment.

Marija Kambic