Tony Delivers By The Numbers

     In Warsaw, Poland at IATA Cargo Emerging markets (CEM) last week Tony Widmer, Head of Air Freight DHL Global Forwarding (DGF) did not disappoint delivering an excellent vest-pocket business outline.
     Widmer told his story sharing insights gathered over a long and distinguished career of the plus and minus points of doing business in Eastern Europe today, while offering a quick course in market conditions and (European Economic Union) EEU economics.
     “It’s a challenge and that’s an understatement,” Widmer said.
     “EEU is 37 ethnic groups, 19 official religions and a total population of 406.6 million.
     “By comparison, today the USA population is 301 million and the Euro zone is 311 million.
     “There are 33 different languages spoken, although 152 million people speak Russian in nine of the countries or about 40% of the total population.
     “EEU is 23,251,142 sq km as compared to USA at 8,826,630 sq km. and the Euro zone at 2,520,000 sq km.
     “But once again Russia is the big land holder at 17,075,200 sq km
     “Czech Republic is number two in investment incentives and No. 3 in investment in telecommunications among 60 of the world’s leading economies.
     “Central and Eastern Europe attracts 31% of FDI in investment incentives and by comparison, more than France, Germany, Spain and Belgium combined.
     “In 2007, the Slovakian automotive industry will produce 950,000-1,000,000 cars per year, giving the country the highest per capita car production in the world.
     “Currently 45 of the top 50 multinational companies are present in Hungary.
     “Poland’s labor force is among the strongest in the world and is ranked 3rd for labor utilization, above the United States and Japan.
     “DGF has not experienced the hurdles which would have created a problem to access the EEU Market.
     “Traditionally our company back in the Danzas days and before the opening of the East has already had strong presence and business in the EEU countries.
     “Today we are operative in Airfreight in 13 EEU Countries and in another 11 countries we work with agents. DGF is growing with double-digit figures across the board in this region. Some of the challenges include the time lapse to get into business here.
     “As example it takes 32 days on average to set up a company in the region as compared to two days in New Zealand and five days in USA.
     “In Austria you will need 29 days and 67 days in Tajikistan while planning years ahead is the rule at 694 days in Suriname.
     “The most friendly business environment is in Austria, Slovakia, Georgia and Armenia.
     “The worse performers are: Croatia, the Ukraine, Uzbekistan, Tajikistan and Belarus.
     For the record the world’s top performers are Singapore, New Zealand and the United States.
     “In general the Safety & Security standards have improved however they are not yet on the level experienced in the west.
     “Security issues in some measure are related to the “infrastructure gap” that we are facing in many airports in the EEU
Countries.
The shortage of modern infrastructure for offices and warehouses are dictating high prices for EEU standards as well.
     “One other challenge we as forwarders experience is the absence of the consolidation possibility in some
Countries (RU/UA/RO).
     “Customer’s domicile and preferential customs stations are also partly hindering efficient forwarding, as is free carrier selection.
     “Across the EEU there are 3173 airports as compared to 3,393 in EU, 14,858 in U.S.
     “Key International airports are Vienna, Warsaw, Budapest, Prague, Kiev and Moscow.
     “Improved airport infrastructures, current expansion and modernizing projects are running in Vienna, Prague, Warsaw and Bratislava.”
Geoffrey