Greenway CEO Andrei Saveliev: “We count on participation in state projects”
Cargo imports into Russia have reduced considerably over the past year and a half, which, in its turn, had a strong negative impact on customs and logistics business. Andrei Saveliev, CEO of Holding Company Greenway, tells IAA PortNews about the market situation and about the Company’s activities in the period of import substitution.
- Mr. Saveliev, can you see any changes in the cargo flow structure over the recent 1.5 years following the rouble devaluation, introduction of sanctions and counter sanctions. How has the market changed?
- The market has changed considerably. Operations of our customers have reduced by some 30%. Moreover, many of them have left the market.
Yet, the structure of imports is the same. Our company is focused on materials: construction materials, equipment, production-related goods. Such cargo is still imported but in moderate volumes now. The market of construction materials and everything associated with the construction industry has sunk.
For example, the market of instruments where we used to enjoy a strong position has seen the prices nearly double. High volume importers, in their turn, cannot fix upon their pricing policy. They are waiting for currency stabilization to announce the cost of their goods.
So, the market has faded and we feel that.
- What is to facilitate the stabilization of logistics and customs services market?
- Currency rates stabilization is the main thing. Lack of stability does not let determine the cost price of the goods and that has a negative impact on trade.
- Are you going to deal with new types of cargo?
- Business has traditionally been divided between major players: those who deal with food, with consumer gods, etc. We have been traditionally working with containerized equipment, construction materials, some consumer goods. There is a base of clients which have been in long business relations with us.
The competition is very tough as our colleagues also strive to keep their clients. However, nobody has special advantages today, everybody is in the same situation. So, the traditional balance of cargo flows has remained unchanged.
- Does cargo mainly come from China?
- Yes, major cargo flows run from China and the Eastern Asia as most of manufactures producing our cargo are located there.
- Tell about your Company’s development plans. What, in your opinion can contribute to attraction of cargo and to logistic development?
- I would say, that Greenway activities shift towards logistics. We used to focus on customs services while transportation was suggested as an additional service. Now it is a specific activity. We earn more on logistics than before.
Meanwhile, logistics is an absolutely different business. Competition is higher here. The more so as there is an opportunity to sign profitable contracts amid the decrease of container transportation rates.
It should be noted, that our warehouses in Moscow, Kotka (Finland) and Hamburg (Germany) is our competitive advantage.
We also count on participation in state projects, for example, in the development of new territories, including Crimea. Greenway services can be in demand for procurement of construction equipment, etc. We consider all tenders with our participation.
- Does the Company continue working on the development of its own software?
- Yes, we proceed with the ‘I broker’ project, successfully introduce it among our clients. Greenway features an extensive paperwork involving our corporate clients – large companies, including state ones. Mutual automation is crucial here. Introduction of such technologies allows for saving of the resources and for suggestion of more attractive services for our clients.
I would note that the software environment developed for data storage and processing lets solve not only customs-related tasks. It is a multipurpose solution applicable for any business.
Holding company Greenway is a major global logistics operator that provides a full range of import and export services in Russia from the supplier’s warehouse to the customer’s warehouse.
Interviewed by Elena Snitko.