The shipping and forwarding sector in Bulgaria is developing fast due to the strong drive from the main international players to enter the non-mature markets of the Black Sea countries.
In order to retain this important position, however, Bulgaria has to do a lot more to improve its infrastructure, Nikolai Bozhilov, CEO of Unimasters Logistics Group, said in an interview with Moving Froward.
Founded in the early days of transition, Bulgaria’s Unimasters Logistics has developed into a large-scale shipping and forwarding business.
The Unimasters story began in 1990, when Bozhilov founded Unimasters Logistics, the first private shipping agency in Bulgaria. Its activity was further expanded in 1993, when Unimasters Logistics Group (UMLG) was created to cater to the finance and administration activities of the group.
This was followed by Unimasters Air Ltd, the first IATA Cargo Agent in Bulgaria, founded in 2003, which has grown into one of the leading airfreight service providers in Central and Eastern Europe.
UMLG is now the leading supplier of high quality port and marine services, freight management and integrated logistic services on the Bulgarian market.
Through its subsidiaries and partnerships with multinational companies, the group has achieved an enviable track record for delivering on its commitment to excellence on time, within the agreed framework, and to the total satisfaction of all parties involved.
In the past few years, UMLG has also accumulated extensive experience in Romania, where it began offering a full portfolio of services in mid-2005.
Today, UMLG is well recognised by the international business community, both inside and outside Bulgaria, for its uncompromising commitment to close partnership, high professional standards, fair trading and best business practices.
Unimasters’ combination of strategic insight, professional capability and commitment to industry leadership makes UMLG uniquely qualified to serve not only leading retailers and suppliers of fast-moving consumer goods, hi-tech equipment and healthcare products, but also small suppliers who require top quality service.
And yet, in order to continue serving like this, Unimasters needs better developed infrastructure.
“In contrast to Romania, which has paid special attention to transport infrastructure, Bulgaria lags behind all other Black Sea countries, including the ones in Caucasus. Obsolete port infrastructure, unfinished regional airport concession deals, complete lack of transparency and strategy for the future privatisation of Navibulgare, Bulgaria Air and others clog the economic environment,” says Bozhilov.
He also mentions what he calls “the archaic practices” of the Bulgarian customs authorities, which do not facilitate speedy customs clearance, thus negatively contributing to the already confused situation.
Maybe this is why he does not expect much to happen until Bulgaria becomes a European Union member. But, massive development afterwards, based on the entry of new logistic players from the EU and a substantial increase in services due to higher demand, will change the things for the better, he says.
One thing about which Bozhilov is happy is that the shipping and forwarding sector does not require special national legislation as it is mainly subject to regulation by international conventions, EU bodies, international professional association rules and others.
“The national legal framework related to ports is very poor due to lack of political will, proper expertise in the Ministry of Transport and continuing cronyism and nepotism,” he says.
The market for logistic services in Bulgaria has already been dominated by the world leaders in container transportation, courier and freight forwarding services. Unimasters works closely with some of these leaders and is strategically allied with others. As a result, Bozhilov says, the company has enjoyed strong organic growth in the past five years.
Unimasters had a very strong financial performance in 2005.
“The first quarter of 2006 was a bit slow due to negative trend in exports, but it started to pick up in the second quarter and we expect another strong year before the EU entry,” Bozhilov says.
