FERCAM: Revenue exceeds one billion
In the challenging global economic landscape of 2023, logistics operator FERCAM reaffirmed its revenue above the one billion mark. The Distribution sector, now managed by the newly formed Joint Venture DACHSER & FERCAM Italia, achieved excellent results.
Throughout 2023, the company continued its investment program in core business activities, starting the year with the recent opening of a new facility in Kaunas, Lithuania. This site is dedicated to Full Truck Load (FTL) operations combining road/rail transport and road transport with owned vehicles and freight management.
– It has been a year of consolidation for the Distribution and European logistics sectors, crowned by the joint venture agreement with Dachser, signed in August 2023. This partnership, extending over two decades, perfectly completes the European network of the German operator, which previously had no facilities in this sector on the Italian market. This extensive European network is expected to result in significant development of the entire sector, allowing us to simultaneously focus our forces on our strategic goals aimed at strengthening our core business – states Hannes Baumgartner, CEO of FERCAM.
The increase in transport volumes (+4%) in the FTL sector did not translate into a similarly favorable revenue trend, as this sector alone accounts for over 50% of the company’s global turnover.
Geopolitical conflicts and weak global conditions, along with significant overcapacity and a marked decline in air and maritime transport rates, have severely impacted the sector; this trend aligns with the challenging market and the development of FERCAM’s A&O business revenue.
Investments in Increasingly Sustainable Logistics
Despite the weak global conditions, FERCAM managed to mitigate negative impacts and strengthen its position as a global logistics operator in 2023. Several projects, delayed due to the pandemic, were initiated and partly completed this year. With a stable financial situation, FERCAM gradually launched an extensive investment program to expand its network and vehicle fleet. These investments focused primarily on increasing the sustainability of the services provided, with significant use of alternative fuels such as HVO to reduce CO2 emissions.
Opening of a Subsidiary in Kaunas, Lithuania
For the company’s core business, the Full Truck Load, the network of foreign subsidiaries was further expanded, and a company was established in Kaunas, Lithuania, at the beginning of this year.
– We chose this location because it is particularly advantageous for combined Road-Rail transport to and from Italy-Baltic States, which this facility will dedicate itself to. Being present at the train’s arrival and departure points for the delivery and collection of vehicles is beneficial. Additionally, this area still has many highly experienced and competent drivers available, and we have always placed utmost importance on being present as local contacts for our most important clients – comments Hansjörg Faller, Head of Freight Management and responsible for the new foreign company of the South Tyrolean operator.
The activities in Lithuania, which include intermodal transport to and from Italy-Baltic States and traditional road transports from Europe to the Baltic countries and Finland, will be carried out by the company’s own fleet of 30 units, supplemented by local operators. Specifically, the trucking for the collection and delivery of vehicles in intermodal transport will be a service handled by the staff of the new Lithuanian subsidiary.
Source: FERCAM
