German logistics company Schenker recently announced plans to build a 7.5 million euro logistics terminal near Bulgaria’s capital Sofia. The facility is designed to meet the increasing demand for logistics services in the country, the CEO of Schenker, Minko Vassilevski, said.

“The investments include the purchase of land, the construction of the necessary infrastructure, the storage base and an office,” Vassilevski said.

He added that the construction works on the terminal should be completed by the end of 2006.

The terminal, spanning a total area of 5000 square metres, will be located in a plot of at least five hectares, Vasilevski said.

Vasilevski said the terminal would allow the company to attract new customers as well as   improving the services for its present ones.

Schenker Bulgaria, which now has a network of six logistics facilities with a total area of 10 540 square metres, works for international major companies such as Volkswagen, Schneider Electric, and Siemens, as well as a number of Bulgarian companies.
Schenker Bulgaria, which currently rents its logistics facilities, does not plan to further expand its network throughout Bulgaria in the next two years, Vasilevski said.

Schenker Bulgaria, which is one of the leading logistics companies in Bulgaria, raised its turnover to more than 40 million leva (20.5 million euro) in 2005 from 33 million leva in 2004, Vasilevski said.

He said that the company handled about 44 000 shipments with a total weight of about 250 000 tons last year, up from 34 000 shipments with a total weight of 164 000 tonnes in 2004.

“The growth was due to the excellent quality and the competitive prices that we offer on the Bulgarian market,” Vasilevski said.

Bulgaria, which is to join the EU in 2007, lacks logistics facilities to service the increasing number of major international companies from all sectors that are expanding in the country, attracted by the expectations of strong economic growth.

At the end of 2004, German logistics company Willi Betz completed a 15 million leva centre in Sofia, while in 2005  Dutch logistics company Royal Frans Maas Group opened a 7.5 million euro logistics terminal nearby.

US-based real estate operator Tishman International Companies also plans a 65 million euro real estate project, including a logistics centre, near the Sofia airport in the summer of 2006.

Schenker first came to Bulgaria in 1889, only 17 years after the mother company was formed in Vienna, Austria.

Historical evidence shows the significance of the company at that time. In 1900 in “Bulgaria Almanac” – the only national yearly reference book – the company was recommended as the largest international transportation company in the world.

In 1944, more than 120 people were already employed by Schenker in Bulgaria.

The new beginning came after the politician changes in Bulgaria of 1989. In 1993, Schenker Bulgaria Ltd was registered. 

Today Schenker offers the full range of logistic services – international and domestic road and railway transport, air- and sea-freight, moving services, customs brokerage, as well as integrated logistics solutions.

The availability of Schenker branches in almost all Balkan countries confirms the leading role of the company in this region.