Bigger means a better chance of survival for Polish players

The transport, spedition and logistics (TSL) market in Poland experienced a boom following the  country's accession to the European Union. "The market increased by about 16 percent in 2004 in comparison to the previous year," president of logistics market leader Schenker Sp. z o.o., Janusz Górski, said.

The road ahead

Since the transport industry is often viewed as a barometer of economy, growing Polish foreign trade and  increase in trade within the EU resulted in growth of demand for transport services as well.

According to Górski, road or land transport in general has the biggest growth prospects. EU accession has lifted border controls, thus significantly shortening delivery time in the Union. Simplified customs procedures and opening up of the market place has resulted in increased demand for part-load road transport, which until the accession was just too costly. This has increased the demand for express delivery services, which are already the fastest growing segment of the TLS market.

However, while generally the market has had a good year and experts see the future in bright colors, life is not easy for small- and medium-sized Polish transport companies. Powerful western TSL companies are proving strong competition for small Polish companies.

Falling prices

"The fall in freight prices can be seen on the European market, which lowers the profitability of TSL enterprises. This especially affects small- and medium-size companies," Górski explained.

With the market experiencing growth many companies bought (or rather leased) a large number of transport vehicles. "Currently the rates on the market are much lower than a year ago, and consequently small companies are having problems stay on the market," Górski explained, adding that some of the smaller companies are even having problems with re-newing their fleet.

Poland the platform

And things probably won't get easier as market consolidation increases. Consequently large companies or groups of companies with a broad scope of activities and the ability to operate on a global scale are formed.  As a result competition on the market is growing and small, family companies that operate a fleet limited to just one or two vehicles will find it very hard to compete.

As for the future of the market, more and more western companies are establishing their distribution centers for regional operations in Poland. What's more, Poland is increasingly becoming a platform for operations on the eastern markets in Russia and Ukraine, where many Polish companies are moving or even establishing their production. 

Special deliveries

Górski predicts that in the future, solutions offered by transport and logistics will be increasingly dedicated to specific fields. "The automobile industry, fast move consumer goods or pharmaceuticals need very specialized services," Schenker's president said.