Round Table

Perspectives for development and foreign investments

in transport and logistics sector in Bulgaria

Sofia, 25 June 2012

NSBS is the official non-governmental organization in the field of freight NSBS is the official non-governmental organization in the field of freight forwarding, transport and logistics services in Bulgaria forwarding, transport and logistics services in Bulgaria

It is recognized as the representative body of the industry It is recognized as the representative body of the industry

The Association incorporates the best branch transport and logistics The Association incorporates the best branch transport and logistics players – over players – over 85 85 national and international companiesnational and international companies

The NSBS members perform: The NSBS members perform:

2/32/3 of the international forwarding services of the international forwarding services

Realize Realize above halfabove half of the sales revenue of the sales revenue

83% of gross profit83% of gross profit reported for domestic industry reported for domestic industry

NSBS Overview

Uniting the freight forwarding and logistics industryUniting the freight forwarding and logistics industry

Representing, promoting and protecting the interests of the industry Representing, promoting and protecting the interests of the industry

Familiarizing trade, authorities and public with freight forwarding and Familiarizing trade, authorities and public with freight forwarding and logistics services’ importance and achievements logistics services’ importance and achievements

Contributing to the improvement of the quality of freight forwarding Contributing to the improvement of the quality of freight forwarding servicesservices

Monitoring the trends and opportunities in the industry Monitoring the trends and opportunities in the industry

NSBS Activities

During the last years sensible reduction of products’ life cycle has been During the last years sensible reduction of products’ life cycle has been registered, strengthening the role of the regional centersregistered, strengthening the role of the regional centers

General utilization of outsourcing of logistic services to 3PL providers General utilization of outsourcing of logistic services to 3PL providers

The dominating tendency of developing and offering combined transport The dominating tendency of developing and offering combined transport servicesservices

The globalization of the economic relations demands the offering of The globalization of the economic relations demands the offering of integrated logistics servicesintegrated logistics services

Basic factorsBasic factors influencing the development of the market for influencing the development of the market for

forwarding and logistics servicesforwarding and logistics services

The sector The sector employsemploys more than more than 186,737 people186,737 people

The sector generates The sector generates 6,434 million Euro6,434 million Euro in revenue in revenue

The sector realizes The sector realizes 1,705 million Euro1,705 million Euro value added value added

The sector represents about The sector represents about 6%6% of the economy in terms of of the economy in terms of revenues, revenues, number of employees and firms number of employees and firms

State of affairState of affair in Bulgarian Transport and Logistics sectorin Bulgarian Transport and Logistics sector

Freight transportFreight transport by land, waterways and airby land, waterways and air

148

2,427

899 761

2,534

1,280

1,439

566

611

573

817

618

160

44

175

162

2006 2007 2009 2010

Freight transported by road,2006-2010, '000 tons

Inland Import Export Transit

631929 890 791

784

1,207949 1,199

880

1,163

631 605145

213

353 325

2006 2007 2009 2010

Freight transported by rail,2006-2010, '000 tons

National Import Export Transit

3,8102,533

1,1661,769

1,733

1,386

1,321

2,599

909

309

344

159

2006 2007 2009 2010

Freight processed at river and sea ports,2006-2010, '000 tons

Import Export Transit

4 4 4

1037

3

9

2006 2007 2009 2010

Freight transported by air,2006-2010, '000 tons

Import Export

Trade logistics is an important element of national competitiveness and LPI dataset can be used to identify key bottlenecks in respective countries.

It is a good instrument to advice on reforms in the fields of border management; trade infrastructure; logistics services; regional trade facilitation including transit systems;

It is a recommendable source of independent and reliable information for the investors who are intending to do business in freight forwarding and logistics market.

Logistics performance index LPILogistics performance index LPIconducted by the World Bankconducted by the World Bank

serves as a guideline for investorsserves as a guideline for investors

LPI results: Bulgaria anEULPI results: Bulgaria anEUMonica Alina Mustra, International Trade DepartmentMonica Alina Mustra, International Trade Department

World Bank, Sofia March 7 2012World Bank, Sofia March 7 2012

6 LPI International Components6 LPI International ComponentsMonica Alina Mustra, International Trade DepartmentMonica Alina Mustra, International Trade Department

World Bank, Sofia March 7 2012World Bank, Sofia March 7 2012

Greatest potential for investments in infrastructure and timeliness

Infrastructure QualityInfrastructure QualityMonica Alina Mustra, International Trade DepartmentMonica Alina Mustra, International Trade Department

World Bank, Sofia March 7 2012World Bank, Sofia March 7 2012

Bulgarian Ports await investors -

Logistika Magazine Issue 6 / July 2011

Why to invest in infrastructure quality?Potential Traffic Growth

Five out of the ten Pan-European corridors

EU to Asia

Asia to EU

EU to Russia

Port of Varna and Burgas are TRACECA corridors

How to invest in infrastructure quality?

Concessions for sea and river ports – Varna, Burgas, Ruse, Lom, Vidin, Tutrakan, Nesebar

Concessions for Airports – Sofia, Plovdiv, Ruse, Gorna Oriahovitsa

Bulgaria and the RegionKosta Sandalci, Chairmen of Fiata Working Group –

Road Transport, Sofia March 7 2012Sofia March 7 2012

Turkey

Import: USD 240 Billion %38 of EU CountriesExport: USD 135 Billion % 46 of EU Countries

Foreign Trade Target in 2023

Export target USD 500 BillionTotal Target: USD 1,2 Trillion

“Take place among the top 10 economies in the World”

Bulgaria is a member of SECI – Southeast European Cooperative initiative

Main goals of SECI:1.Regional Cooperation

2.EU integration

Today’s challenges for the logisticsDr. Gerhard Troche, European Commission,

Sofia March 7, 2012Sofia March 7, 2012

Cargo transported by NSBS members in freight tones

Sea

Rail

RoadAir

National Transport Market Jordan Nedev, Managing director BDZ,

Sofia March 7, 2012Sofia March 7, 2012

NSBS MembersNSBS Members with foreign capitalwith foreign capital

DHL Express Bulgaria DHL Express Bulgaria

Gebrueder Weiss LogisticsGebrueder Weiss Logistics

DSV Air & SeaDSV Air & Sea

DSV RoadDSV Road

Lagermax SpedicionLagermax Spedicion

Militzer & MuenchMilitzer & Muench

SchenkerSchenker

Maurice WardMaurice Ward

Quehenberger LogisticsQuehenberger Logistics

Aramex Aramex

Act Logistics PLC Act Logistics PLC

Express-Interfracht Express-Interfracht

Spedition GesellshaftSpedition Gesellshaft

Cargo-partnerCargo-partner

Logwin SolutionsLogwin Solutions

Lion Shipping Lion Shipping

& Chartering& Chartering