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Indiaexportnews.com

VB Transport SIA – effective forwarding and quality transport

  15.04.2004    

Answering the question what is the basic counterpart of the transport-forwarding business, president of VB Transport SIA Andrey Bogdanov said, probably forwarding, since this is what provides transport sector with work, which is then to be purchased and renewed. Extension of the fleet was followed by constant increase of cargo.





How cost-effective is the road haulage today? It depends a lot on the service quality, since besides delivery from destination A to B client expects a complex range of services to be provided. Besides customs procedures, transportation involves a line of nuances, which are to be taken in consideration. Today winner is the one able to cope with these demands.

Development stages

The company was founded in 1996, when several trucks were purchased to ship goods from Latvia to Russia. By gradually increasing volume of work and services, company came over new partners all over the Europe, including the Baltic States and Russia. It led to necessity provide for even wider range of services, e.g. freight forwarding, warehousing services and customs procedures. Within the framework of cooperation with a customs warehouse located in Riga, clients are offered to reload and temporary store cargo in the warehouse. While declaration department of the company does the necessary document procession – CMR, TIR Carnet declaration and customs re-registration. To increase effectiveness of services, company was reorganized in 2003, which resulted in distinguishing among the departments of particular services. Presently SIA VB Transports is a transport company offering transportation of various cargos in tents, mega-trailers and refrigerators. The most common cargo transported to the European countries is wood processing products, cotton, turf and other products. SIA West East Bridge is a logistics company organizing cargo transportation to Western Europe, Eastern Europe, Scandinavia, the Baltic States and Russia.

Forwarding and psychology of trust

VB Transport SIA just like other stable companies with a name has its own trust-worthy clients, where cooperation is built on a mutual trust. In Europe, in respect to the wishes of the client, export cargo documents are being processed in the warehouses and in cooperation with companies like Check-point Bravo, Boxler and Saenger GbR in Berlin, TIR Logistik in Marburg (Germany), DEKA Spedition GmbH, Gross Enzersdorf in Austria. Cargo from Europe is being shipped to our permanent partners in Moscow – ATDesigne, Binord, Nord – West, furniture salons Trio, Solo and others. We also have established cooperation with transport companies in Germany: ECON Int.Sped. GmbH in Essen, AVTOSPED in Bremen, K.ALLGAIER GmbH, Neu – Ulm, GALAKTIKOS Int. in Berlin. Business expansion is connected with new partners, therefore most difficult aspect in the transport companies’ work is psychological aspect, ability to read between the lines – see true intensions and promises of the potential clients and find out possibly more about their business. Due to this reason VB Transport SIA avoids using the Internet transport exchange, since one does not know anything about the potential partner. Mr. Bogdanov: We check the Internet transport exchange sites in extraordinary cases, when the business is not running… Concerning the western Internet transport exchange sites, who check their clients and access to this data base is not free of charge and they do not hurry to work with East European clients.

Vehicles and their age qualification
To provide for fast and quality services, company has to gradually invest into fleet renewal and equipment for truck repairs and maintenance. VB Transport SIA truck fleet registers 32 units, mainly Volvo and Scania trucks. Six more vehicles are ordered, four of them to carry oversize cargo, which must have special transportation allowances in Europe. The business of the transport company VB Transports SIA lies within international cargos forwarding between Europe and Russia. The vehicles of the company are often seen in countries like Latvia, Lithuania, Estonia, Poland, Czech Republic, Finland, Germany, Netherlands, Belgium, Switzerland, Austria, Italy, France, Spain, Portugal, Russia (Moscow, St Petersburg). If we have a good co-operation proposal with clearly stated plans, says Mr. Bogdanov, – we will not refuse visiting new countries where we have not been so far. Efficient operation of the trucks also ensure 10 ETMK permits. Since age of the trucks varies, older vehicles operate on a shorter distances, i.e. not further than Poland – in order not to become a victim of a German vehicle inspectors' service. Only new trucks with a guarantee go to Europe, and if a failure is being detected, says Mr. Bogdanov, – claim goes to a company, which guarantees perfect technical condition of a vehicle and which charges for leasing and vehicle inspection. In my opinion we are protected against ungrounded charges. To respond to the clients' interests company offers flexible, effective and competitive solutions on the transport services market, including ferry transportation and container delivery to all directions. Ferry is being selected according to the fastest delivery terms. Important aspect is possibility to avoid queuing on the frontiers. We hope, says Mr. Bogdanov – that entering the EU will solve the queuing problem, since trucks happen to spend up to half of the trip in queue.

Work in Russia guaranteed

It is hardly believable that forwarders of the new member-states will be enjoying some special conditions to operate in Europe. Much more possible is that they will face restrictions that protect the European market. In this situation, notes Mr. Bogdanov, working with Russia will be a kind of guaranteeing factor of stability and competitiveness. I doubt that big Western companies will try to complicate their lives with problems of crossing Russian borders. Besides, demands of Russian consignees are very strict, which also keeps forwarders away from these routes. To operate more effectively in Russia the company haev opened its office in Moscow. It helps to solve problems right away, process the information and be closer to the clients. Additionally, Moscow office provides also for broker and customs clearance services.

To ensure long-life and quality service of the vehicle

Previously forwarders of the Baltic States used to purchase new trucks, in order to receive the CEMT allowance, which gave right to work in Europe, however, after entering the EU, fleet will grow older. However, says Mr. Bogdanov, – service centers will have more work to do! Our company decided to open own service center. Such facilities justify the expenses if there are at least ten trucks in the fleet. Key advantage is settling insufficient failures on the spot, which may progress and cause serious damage. Nevertheless remain works, which can be provided only in specialized service centers, since manufacturers also protect their own interests, e.g. equipping the vehicle with software, which can be fixed only by an expert.


Tracking system – for sake of control and safety

VB Transports SIA equips the vehicles with the tracing system in real terms: electronic map allows forwarder not only follow the track of the truck, but also receive reports from the driver for the last day. Map resolution goes down to postal codes’ identification, so forwarder knows in which part of city the vehicle is. Purchase of the system, setting the necessary office equipment and board computers is not cheap, but even preliminary testing of the system on several trucks proved its efficiency in saving money. Another advantage of this navigation system is that it is not visible, i.e. one cannot determine its existence by appearance of the truck. This is essential in cases when trucks are being stolen or other. In addition to the control it also provides for the safety of the drivers.

















































































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