For over a dozen or so years Poland has dominated European road transport. This is evidenced by Eurostat data, according to which the number of tonne-kilometers transported by Poles grew from 100 million in 2004 to 300 million in 2016. During this period, economic powers like France and Germany recorded significant declines. However, now new competitors are born at Poland’s side. Lithuania is celebrating a success in the transport market.
In terms of the number of transported cargoes, all Lithuanian companies are breaking the records of the decade. The country’s economy is largely based on transport and transit, and the importance of this industry is growing each year. This is evidenced by the fact that currently, road transport generates 9 percent of Lithuania’s GDP, which is the highest indicator of the last ten years. In this respect, Lithuania ranks among the top European Union countries – in no other country does transport generate such a large part of the GDP.
– Lithuanian transport reports record results. They are a consequence of investments, which in turn affect the competitiveness of domestic entrepreneurs – said the Lithuanian transport minister, Rokas Masiulis.
Over half of the loads transported by Lithuanian entrepreneurs are fulfilled by road transport. The most important thing is that the majority of Lithuanian orders come from abroad – as much as 90 percent of tonne-kilometers represent international transport.
Increasing investments and record results
The number of tonne-kilometers transported by Lithuanians has been growing twice as fast in the last decade as the country’s GDP. In the fourth quarter of last year, Lithuanians transported 8.8 million tkm, or 22 percent more than in the same period of 2016. Out of the total, 8.1 million tkm is international transport, which means an increase of 25 percent. In 2016, the number of tkm, carried out by domestic carriers, increased by 19%, in 2017 – by over 29%.
– The country’s economic growth creates good conditions for the development of transport enterprises. 2017 was even record-breaking in terms of leasing – our clients rented twice as many trucks as in 2016 – 1407 tractors and 1258 trailers – says Vilius Juzikis, director of business banking and board member of SEB Bankas.
New directions in Western Europe
Big companies from Lithuania set a goal to extend the network of new directions so that the trucks take longer and longer routes. Before the trade crisis with Russia, the Lithuanians clearly dominated in the Commonwealth of Independent States (CIS) countries. Nowadays, their participation in European transport has clearly increased. For example, in the first quarter of 2018, the number of kilometers driven by Lithuanian trucks on German roads increased by 23.7 percent compared to the first quarter of 2017. This is another, over 20-percent increase in this market.
Truck traffic is also changing through Lithuanian borders with Russia and Belarus. In 2017, according to the bank of Lietuvos Bankas, 2.3% more trucks crossed the border Miedniki, in Ławaryszkach – by 13.3 percent, and in Szumsku – by 54 percent compared to 2016. The increase was also recorded in Kibart (0.82%), Ramoniszki (3.1%) and Nida (10.2%).
However, Western Europe remains the main direction of Lithuanian transports – 80 percent of tonne-kilometers transported by Lithuanians. Until 10 years ago, transport to the West accounted for 60 percent.
– The increase in the competitiveness of Lithuanian carriers is also influenced by the fact that local entrepreneurs more often decide to invest in IT solutions and modern methods of enterprise management. In the first place, we are talking about large companies that have a positive influence on the state of the national fleet market and create good working conditions for drivers – says Vilius Juzikis.
According to the opinion of the Lithuanian Minister of Transport Rokas Masiulis, the export of transport services accounts for almost 60 percent of the entire export of services. That means they are of crucial importance for the country. The export of Lithuanian transport services in 2017 was worth 4.89 billion euros, an increase of 26 percent compared to the same period of 2016.
– Export of transport services is almost 60 percent, so it is in our interest that Lithuanian carriers carrying out international transport can do it on competitive and favorable terms” – said Rokas Masiulis.
The largest increase in the export of services last year was noted by Lithuanians in Germany (+47%), France (43%), and Austria and Italy (37% each).
Domestic orders on top of the list
SEB Bankas published interesting results of the analysis of the transport market in Lithuania, related to the condition of local entrepreneurs. The point is that – probably taught by the sad experience of losing the absorptive Russian market – Lithuanians firstly care about the development of activities in the internal market. So that in the event of a potential crisis, the company would have enough orders domestically to survive.
According to the research results of SEB Bankas, transport companies with a park of over 100 vehicles, recorded higher revenues in 2017, achieved better performance indicators of the company and invested more in the truck fleet than companies with less than 100 trucks.
Photo: Trans.INFO