International trade is at the heart of economic growth and prosperity. It’s the lifeblood of the global economy. But it’s also not easy – and that’s never been more obvious than in the last few years.
Think about Eastern Europe alone. We’ve experienced COVID-19, the war in Ukraine and significant economic volatility. At the same time, environmental commitments and regulations are reshaping supply chains and increasing compliance costs. All of this has made it tougher for businesses to move goods across the region profitably, reliably and sustainably.
It has also highlighted the opportunity that exists for companies that can offer comprehensive end-to-end logistics services that address customers' pain points: reducing costs, accelerating delivery times and ensuring full transparency at every stage of the supply chain.
Turning DP World into a force for European integrated logistics
DP World has long been famous for its operations for ports and terminals. In Eastern Europe, for example, our network includes Yarımca, one of Türkiye’s largest and most advanced container terminals, Constanța in Romania, one of the most important ports on the Black Sea, and the Danube River port of Novi Sad in Serbia.
Historically, our air, rail and road transport services have been slightly less well-known outside the industry…
However, today I am proud to announce that we have launched a pan-European logistics service that brings a true end-to-end solution to the market, integrating road, rail, air, sea and inland water freight into one seamless experience. In so doing, DP World has been thrust into the forefront of supply chain integration in Europe.
Romania as the pivotal force
The operational hub of this new end-to-end service, the European Control Tower, will be located in Bucharest.
Why Romania?
There are three answers to that question, which can be summarised in one simple phrase: strategic advantage.
1. Geographical position: Romania serves as a bridge between Western Europe, Eastern Europe and Asia, making it an ideal transit hub for goods coming into Europe. It provides direct road, rail and barge access to key Western European markets, as well as emerging economies in the Balkans.
But why is now the right time to leverage Romania’s strategic potential as a hub for efficient cross-border logistics?
There are two main operational reasons for this. First, Romania has been a full member of the Schengen Area since the start of this year, speeding up the time it takes to cross the border by road. And second, the Romanian government has pledged to invest over €27 billion in completing 2,000 km of highways and express roads, which will accelerate the time it takes to reach those border-crossing points.
2. Building on DP World’s strong position in Romania: DP World’s port in Constanța already serves as a major gateway for shipments entering Europe from Asia. It includes a multi-modal terminal that connects maritime routes to road, rail and inland waterway networks across Europe. We also have the multi-modal terminal in Aiud, just south of Cluj-Napoca in Transylvania, through which goods continue on to the rest of Europe by road and rail.
3. Meeting customer demand: We are seeing fast growing demand for end-to-end service across Europe, but particularly in South Eastern Europe – specifically in Romania, Moldova, Serbia, Türkiye and Bulgaria. So, this is where we will focus first, before expanding the service into Central and Western Europe.
As excited as I am about what this service will do for DP World, I am equally optimistic about it’s potential as an economic enabler for Romania and wider Europe. By streamlining international trade, we will drive increased volumes in and out of the country, enhancing economic competitiveness. It will also open up international markets to Romanian businesses, facilitating their growth and expansion internationally.
We have been strong partners in Romania for more than 20 years. I have no doubt that the next 20 years will be even more fruitful.
What value can customers expect from this new service?
This service has been designed to meet customers’ most pressing and important logistics challenges. Here are some of the ways our customers will benefit:
1. Simplification and efficiency: Our end-to-end approach simplifies supply chain management, reducing the complexity of dealing with multiple suppliers, simplifying invoicing and contract management and enhancing operational efficiency.
2. Cost savings and flexibility: Operational efficiency means cost savings. Flexibility means the ability to meet diverse customer needs.
3. Speed: Integration ensures faster delivery times. We will also continue to invest in state-of-the-art technology like the new drive-through scanner that has just been installed at the RO-RO terminal at the Port of Constanța. This groundbreaking technology, the first of its kind in Central and Eastern Europe, facilitates truck inspections by reducing processing times from five - seven hours to two minutes. It is already being used to inspect all import and transit containers at the terminal.
4. Transparency and resilience: We will be in a position to adapt routes and manage contingencies quickly, mitigating risk and ensuring business continuity during disruptions. The Control Tower in Bucharest will also lead on the development of advanced digital platforms that allow for real-time management, predictive analytics and seamless communication.
5. Sustainability: By enabling the broader use of DP World’s ‘groupage’ offer – which groups together goods dispatched by different companies into the same load – empty space in trucks, ships, trains and planes can be kept to a minimum, lowering the environmental footprint of each consignment.
Transforming logistics
I have emphasised that this new end-to-end service is about meeting the needs of today’s customers, but it’s actually much bigger than that. It’s about the future.
For DP World, Eastern Europe is a region of untapped potential and our ambition is huge.. By leveraging our existing strengths, we can build deeper relationships with customers and expand into new markets. It will be transformative both for DP World and for our customers.
We now have the opportunity to take an industry lead in making supply chains more resilient, efficient and sustainable – right the way from factory floor to customer door.