Delivering the goods
WBJ spoke to the vice president of Frans Maas and DFDS Transport in Poland, Thomas Jansson, about the future of the DSV group in Poland.
Michał Pakulniewicz: What was the reason for the merger?
Thomas Jansson: The decision to acquire Frans Maas wasn't made in Poland, the perspective was European. To begin with, DFDS Transport had a strong presence in Northern Europe. Frans Maas, on the other hand, was present on the southern markets, such as Spain, Italy or Portugal, where DFDS was only represented by partners. These are huge and important markets, and for DFDS it meant that every time we did something on any of these markets we gave away half of the profit to a partner.
In this new setup it stays within a group with the DSV flag standing in Spain or Italy. Now we have complete coverage of the continent when it comes to road freight.
Secondly, DFDS Transport was traditionally very strong in road and sea freight, whereas Frans Maas had something that we were not as strong in, and that is third-party logistics, such as warehousing, pick and pack, etc.
The third reason for the merger is the fact that DSV is on the stock exchange. If you have a large cash flow there is always a question of what to do with it. Either you pay it back to your owners or you can create more value, which is why we made this acquisition.
Does the merger represent a tendency towards consolidation on the market?
We have seen a tendency in the last five years that bigger and bigger companies are being created as a result of mergers. I believe that this process will continue. This enables companies like ours to have complementary coverage both in terms of business and geographical profiles. With this merger we will become one of the big ones in Europe, I would say the third-largest player, which will offer European coverage in every aspect.
What position did the two companies hold on the Polish market?
We brought about zł.150 million each in terms of turnover into the merger - Frans Maas about zł.155 million and DFDS zł.145 million. The net profit of the Frans Maas group was zł.3.3 million, while DFDS earned zł.5.5 million, giving a joint result of almost zł.9 million. DFDS grew by 12 percent and Frans Maas' result increased by three percent. I would place the merged company in fifth position on the Polish market.
The companies' scope of business was similar to their situation on other European markets - 90 percent of DFDS' business was road freight, while Frans Maas' portfolio was more diversified. The majority of the turnover of the new merged company will still be road freight, but it will bring a much stronger presence in air and sea, and especially in logistics.
What are your expectations for the first years of joint activities on the market?
This year we expect turnover to be around the sum of the two companies' turnovers, so roughly zł.300 million. As far as next year goes, I would expect if not a two-digit, then close to a two-digit growth rate.
Can Poland become a bridge between Eastern and Western Europe and the region's hub?
Poland has a very favorable location and can provide services to the northern, southern, eastern and western parts of the continent. But unfortunately the road system still brings about some limitations to the industry's growth. In the foreseeable future any hub in Poland will probably only provide services in Poland due to the limitations of the roads - it will just not be fast enough. With better infrastructure Poland can be a regional hub, but that won't be in the nearest future.
