newstodate.aero
APR 27, 2004 (newstodate): Estonian logistics company Air Cargo Estonia is anticipating deep changes after May 1, the date of entry into the EU.
-The entry into EU will first of all mean that up to 80 percent of our volume of customs clearance work will go, reducing our need for customs brokers to three or four compared to currently eight, says Andres Matkur, Air Cargo Estonia general manager.
-This change will of course affect our competitors as well, depending on their reliance on customs brokering that is usually more profitable than other logistics services. For us this business contributes some 30-35 percent of total turnover, so we will probably lose 20-25 percent in revenues this year, he says.
Mr Matkur says that some 90 percent of Estonia's business volume is related to the EU, indicating the dramatic impact on logistics businesses the immiment EU-entry will have.
-In general it will of course be a benefit to the community as logistics services will become cheaper as costs go down, but at least in the short term the effects on Estonia's logistics providers will be severe, he says.
According to Mr Matkur the venues for Estonia's logistics companies to survive will include the tranfer cargo business from the EU to Russia, and the volumes of trade between Estonia and the other EU countries, both expected to grow after May 1.
Air Cargo Estonia, Panalpina's agent in Estonia, is currently not involved in the Russia transfer business, but plans are underway in cooperation with "some partners", Mr Markus says.
-The entry into EU will first of all mean that up to 80 percent of our volume of customs clearance work will go, reducing our need for customs brokers to three or four compared to currently eight, says Andres Matkur, Air Cargo Estonia general manager.
-This change will of course affect our competitors as well, depending on their reliance on customs brokering that is usually more profitable than other logistics services. For us this business contributes some 30-35 percent of total turnover, so we will probably lose 20-25 percent in revenues this year, he says.
Mr Matkur says that some 90 percent of Estonia's business volume is related to the EU, indicating the dramatic impact on logistics businesses the immiment EU-entry will have.
-In general it will of course be a benefit to the community as logistics services will become cheaper as costs go down, but at least in the short term the effects on Estonia's logistics providers will be severe, he says.
According to Mr Matkur the venues for Estonia's logistics companies to survive will include the tranfer cargo business from the EU to Russia, and the volumes of trade between Estonia and the other EU countries, both expected to grow after May 1.
Air Cargo Estonia, Panalpina's agent in Estonia, is currently not involved in the Russia transfer business, but plans are underway in cooperation with "some partners", Mr Markus says.