"A big chaos", this is how Sorin Sofian, a CEO with TCE Logistica, a top five courier on the market, describes the current situation on the market, a transport sector that a year ago held the leading position in terms of deals.
The CEO of TCE Logistica, part of RTC Holding group controlled by Octavian Radu, says that during December-May period the company lost 35% of its customers, amid the "exaggeratedly small" tariffs on the market. Also, he maintains that the first three or four months of this year represented a "battle for survival".
Last year, TCE Logistica acquired Curiero brand and operated a share swap with Curiero internal delivery services firm.
"Things are very unclear, I cannot anticipate when they are going to clear up. Unfortunately, before the operation with Curiero we were very solid in terms of operations and we were in the red, but now we're operating at a loss," Sofian said.
TCE Logistica posted 4.8m-euro turnover in the first quarter, up 69% from a year ago. Still, the CEO says the three or four months were a battle for survival. In December-May period, the company lost 35% of clients and its turnover dropped by the same percentage.
RTC group is also a client of the company, contributing 15-17% to its turnover.
As the company saw its business volume slump, it also made restructuring moves. "We laid off 400 people and we'll make more people redundant should the situation not stabilise". The total number of employees stood at 1,800 in December.
Sofian also specified in May-June the company's business had somewhat steadied, though. "In July, we are sure to step into the black and in the second half we'll recoup losses of the first months of the year," Sofian said.
The company also optimised costs by reducing its vehicle fleet. "Of the 600 vehicles we used to operate with, we gave up 150. Some are privately
