The integrated logistics services provider DB Schenker increased its revenue in Austria and South East Europe by 10.9 percent to approximately €1.48 billion in 2017 (2016: €1.36 billion). The company also invested around €21.5 million in the expansion of its network and the modernization of its sites. DB Schenker processed more than 11.25 million land, sea, and air freight consignments in the Cluster South East Europe in 2017. The logistics services provider thus increased its consignment volume by more than 2.6 percent from the prior year – and by more than 10.2 percent as compared to 2015.
Focus on growth: Contract logistics revenue up by 22.6 percent
DB Schenker was able to increase its air freight volume by 20.8 percent to 92,829 consignments in Austria in 2017 alone; air freight consignment volume in the Cluster South East Europe rose by 13.2 percent to 202,038. Land transport volume increased by 2.5 percent to approximately 10.9 million consignments, which represents an increase of 10.4 percent in South East Europe as compared to the figure for 2015. Land transport consignment volume in Austria totaled 7.43 million - an increase of 5.6 percent from 2015. DB Schenker also recorded a slight increase to 247,477 TEU in ocean freight volume in South East Europe.
All signs point to continued growth in contract logistics as well, as DB Schenker recorded a total revenue of €138 million in this segment in Cluster South East Europe in 2017, an increase of 22.6 percent from the prior year. The company’s contract logistics revenue in Austria alone rose by 14.1 percent to €42 million.
Several subsidiaries in South East Europe actually recorded double-digit revenue growth. Particularly good results were achieved here by the subsidiaries in Slovenia (+26.3 percent), Romania (+22.5 percent), Turkey (+11.1 percent), Bulgaria (+9.3 percent), and the Czech Republic (+18.5 percent).
DB Schenker in Austria and South East Europe currently employs around 7,000 men and women at more than 80 locations, which offer the complete range of the company’s products and services in 14 countries – from Austria to Turkey.
Long-term investments in Austria and South East Europe
DB Schenker remains on course for growth in terms of investment as well. Total investment volume in 2017 amounted to more than €21.5 million. Investments in South East Europe in 2017 focused on the relocation of the national subsidiary in Turkey to a new modern headquarters in Istanbul (approx. €6 million), expansion of the facility in Sofia, Bulgaria (approx. €2 million), and construction of a new terminal in Bucharest, Romania (approx. €6.5 million). DB Schenker also invested around €7 million to expand office and warehouse space in Liberec, Czech Republic.
Back in 2016, the company invested about €60 million in the expansion of its network and the modernization of its facilities in Austria and South East Europe. The integrated logistics services provider’s budget for the current financial year includes investment volume of approximately €40 million for Austria and South East Europe.
New strategic initiatives: “MOVE” and “E-forwarder”
DB Schenker is also implementing a new program known as MOVE. This program will improve operations at Austrian facilities by introducing standardized formats for specifically defining project targets, various measures, and timetables across all hierarchies in a system developed and implemented by and for employees. “The goal is to excite our customers with our products and services,” says Helmut Schweighofer, CEO of DB Schenker in Austria and South East Europe.
Another firm component of the strategy for 2018 is the digitization of DB Schenker’s core business. “We are on our way to becoming an E-forwarder,” Schweighofer explains. To this end, DB Schenker is seeking to establish a completely digital business process on an international scale that covers everything from tenders to invoicing.
DB Schenker in Austria and South East Europe