Raben Group starts expansion drive
In a relatively under-developed market characterized by few large companies, Poland is identified by Raben Group to be the perfect location to launch a bid for long-term regional dominance.
"According to Western European norms, a greater degree of competition from a multitude of medium-sized logistics suppliers represents a mature market," says Raben Group CEO Edwald Raben. "Before that situation arrives in Poland, we plan to get ahead in the market."
The Raben Group employs 2,000 people and has had a presence in Poland for 13 years. Fanning out from its greenfield Polish operation bases, 2003 was a faster infrastructure growth year than Raben Group had expected, with new bases being set up in Ukraine and Belgium.
Edwald Raben sees significant economic growth in Poland this decade to be the main factor in his own business's success. "EU structural funding for the roads is likely to greatly enhance the activity of our business," he says. "Without better roads, Poland cannot grow. The improved roads will eventually come, and we will massively benefit from that."
Added to this, Poland offers a strategic location as a thoroughfare for goods between Europe and the (now EU) Baltic states in particular. The reduced customs procedure times, especially on Poland's long western border with Germany and short north-eastern border with Lithuania, will be an immediate boost to trade.
Prior to Poland's EU membership, customs officials on the EU border could hold freight transport for up to 25 hours. They are now allowed only a fraction of that time.
Groupage shipments (the grouping together of varied cargoes for shipping in the same container) need to be scheduled much like a flight or rail timetable. These will depart on a daily basis from a range of European terminals, allowing clients to 'book' space in a container weeks in advance. The range of '48-hour' operations will extend from Estonia in the north to Hungary in the south and Belgium in the west, a market of some 146 million customers.
New, gentler border controls have allowed Raben Group to expand the area of the continent to which it can guarantee 48-hour delivery time. 'Starting from May this year, a pallet of flowerpots collected on Monday from Piaski Brzostowskie will be delivered by Raben as soon as Wednesday to the customer expecting it in the beautiful gardens in Keukenhof, Holland,' the group's PR boasts.
But for all the benefits created for Raben Group by Poland's EU membership, there are considerable costs. Edwald Raben accepts that the new EU border on Poland's immediate eastern flank does create a check to trade with one of Poland's most important partners, Ukraine.
"There will be additional problems on the Ukrainian border," says Raben. "The frontier will be tighter than it was, but the local authorities will try to concentrate on transferring frontier officials and expertise from the West to the East."
European integration also results in new conditions of competition for Raben Group. To pre-empt an onslaught from western European rivals, the company has begun partner cooperation with a leading German food logistics company, Dachser Lebensmittel Logistik.
A key feature of Raben's strategy in Poland has been flexibility. For example, Raben Group does not demand minimum term contracts from its clients. Furthermore, it tries to add a level of service that takes into consideration the specific needs of each client.
"One of our services is for car spare parts," explains Raben. "We make sure that spares suppliers get overnight delivery so that they are ready for their customers within a day of the request."
As of July 1 this year, the company will construct up to 11 new terminals in European Russia, therefore increasing traffic through Poland and taking advantage of an even less developed market. However, Poland is still Raben Group's biggest growth area.
"The transport of fresh, organic produce from Poland to western Europe is Polish agriculture's big chance," says Raben. "But we have many different customers, and we will not try to promote one kind of product in place of another. We are the transporters. It's not really our business what we transport or whose it is."
One transported good that Raben must be careful about is also currently a big feature of the western European media: illegal immigrants, many of whom have apparently stowed away in goods vehicles. "We have very strict guidelines for our drivers about sealing containers," says Ruben. "We've never had an incident of a stowaway, and company policy is ensuring that it never happens."
At present, the Raben Group covers the area of Poland, Ukraine, Belgium and Holland. The company's infrastructure includes 49 warehousing and distribution terminals serviced by around 2,200 transport units. Planned turnover for 2004 is zł.769 million (160 million).
"According to Western European norms, a greater degree of competition from a multitude of medium-sized logistics suppliers represents a mature market," says Raben Group CEO Edwald Raben. "Before that situation arrives in Poland, we plan to get ahead in the market."
The Raben Group employs 2,000 people and has had a presence in Poland for 13 years. Fanning out from its greenfield Polish operation bases, 2003 was a faster infrastructure growth year than Raben Group had expected, with new bases being set up in Ukraine and Belgium.
Edwald Raben sees significant economic growth in Poland this decade to be the main factor in his own business's success. "EU structural funding for the roads is likely to greatly enhance the activity of our business," he says. "Without better roads, Poland cannot grow. The improved roads will eventually come, and we will massively benefit from that."
Added to this, Poland offers a strategic location as a thoroughfare for goods between Europe and the (now EU) Baltic states in particular. The reduced customs procedure times, especially on Poland's long western border with Germany and short north-eastern border with Lithuania, will be an immediate boost to trade.
Prior to Poland's EU membership, customs officials on the EU border could hold freight transport for up to 25 hours. They are now allowed only a fraction of that time.
Groupage shipments (the grouping together of varied cargoes for shipping in the same container) need to be scheduled much like a flight or rail timetable. These will depart on a daily basis from a range of European terminals, allowing clients to 'book' space in a container weeks in advance. The range of '48-hour' operations will extend from Estonia in the north to Hungary in the south and Belgium in the west, a market of some 146 million customers.
New, gentler border controls have allowed Raben Group to expand the area of the continent to which it can guarantee 48-hour delivery time. 'Starting from May this year, a pallet of flowerpots collected on Monday from Piaski Brzostowskie will be delivered by Raben as soon as Wednesday to the customer expecting it in the beautiful gardens in Keukenhof, Holland,' the group's PR boasts.
But for all the benefits created for Raben Group by Poland's EU membership, there are considerable costs. Edwald Raben accepts that the new EU border on Poland's immediate eastern flank does create a check to trade with one of Poland's most important partners, Ukraine.
"There will be additional problems on the Ukrainian border," says Raben. "The frontier will be tighter than it was, but the local authorities will try to concentrate on transferring frontier officials and expertise from the West to the East."
European integration also results in new conditions of competition for Raben Group. To pre-empt an onslaught from western European rivals, the company has begun partner cooperation with a leading German food logistics company, Dachser Lebensmittel Logistik.
A key feature of Raben's strategy in Poland has been flexibility. For example, Raben Group does not demand minimum term contracts from its clients. Furthermore, it tries to add a level of service that takes into consideration the specific needs of each client.
"One of our services is for car spare parts," explains Raben. "We make sure that spares suppliers get overnight delivery so that they are ready for their customers within a day of the request."
As of July 1 this year, the company will construct up to 11 new terminals in European Russia, therefore increasing traffic through Poland and taking advantage of an even less developed market. However, Poland is still Raben Group's biggest growth area.
"The transport of fresh, organic produce from Poland to western Europe is Polish agriculture's big chance," says Raben. "But we have many different customers, and we will not try to promote one kind of product in place of another. We are the transporters. It's not really our business what we transport or whose it is."
One transported good that Raben must be careful about is also currently a big feature of the western European media: illegal immigrants, many of whom have apparently stowed away in goods vehicles. "We have very strict guidelines for our drivers about sealing containers," says Ruben. "We've never had an incident of a stowaway, and company policy is ensuring that it never happens."
At present, the Raben Group covers the area of Poland, Ukraine, Belgium and Holland. The company's infrastructure includes 49 warehousing and distribution terminals serviced by around 2,200 transport units. Planned turnover for 2004 is zł.769 million (160 million).
