The largest asset-based transportation company in Europe, a Lithuanian organization Girteka Logistics publishes its financial results for the year 2020. The company announces that, despite the tense situation dictated by the pandemic in the global markets, sales revenue increased by 5%. Although the growth was hindered by transportation service and fuel price decreases, the profitability of operations recovered.
Good results – the fruits of teamwork
“This year Girteka Logistics counts its 25th year of experience. During this time, we have grown from one person who purchased one truck to be the biggest asset-based transportation company in Europe. We overcame multiple difficult situations, and so we are happy and thankful to the whole team that over the past year, which was full of challenges, we not only adapted to the new reality formed by the global pandemic, but also moved forward,” says Edvardas Liachovičius, CEO, Girteka Logistics.
The organization Girteka Logistics announces that last year the sales revenues grew by 5% from 945 million euros in 2019 to 996 million euros in 2020. Alongside, profitability recovered from 9 million to 23 million euros. The ability to effectively adapt and overcome challenges posed by the coronavirus is recognized as the most significant positive influence on the company’s financial results.
“During the year of the pandemic, when the supply chains were being disrupted, we were one of those who prevented the world from coming to a still. Despite high uncertainty and various difficulties presented by closing borders, day by day, from one country to another, our trucks transported food, medical products, electronics, and other goods, invaluable to every one of us,” tells E. Liachovičius.
Attention to employees
Girteka Logistics CEO also highlights that, despite the challenges of the pandemic, over the past year the company paid a lot of attention to employee development and improvement of working conditions. One of the main instruments for this was the constantly renewed modern fleet. By the end of 2020 the fleet comprised of more than 8 000 trucks, with an average age of two to three years. Exceptionally modern trucks, equipped with the newest technology, first ensure the best experience for the drivers and also help improve road safety and become more environmentally friendly due to lower CO2 emissions.
Aiming to retain the current team members and attract new ones, the company invested a lot in employee development. Over 50 000 programs for learning and increasing qualifications were completed by the drivers working in the Girteka Logistics team. The International Road Union recognized 11 Girteka Logistics drivers as the best drivers in road transportation promoting their profession. Such award is only presented once in a lifetime.
“I am grateful to my team and I am proud of its achievements. Despite the discussions surrounding the drivers’ working conditions, numbers speak for themselves. More than half of new drivers join the team thanks to the recommendations of current drivers. Around 40% of colleagues who leave the company return once they take a rest or gain new experience in a competing company,” shares Girteka Logistics CEO.
Pandemic – a time for unity
During the year of the pandemic, the Girteka Logistics team worked towards more than just business goals. Free of charge, the company’s trucks transported medical masks, textiles to sew medical clothes, humanitarian cargo and similar goods. As theatres and concert halls went quiet, the organization, together with the Lithuanian National Opera and Ballet Theatre, turned a semitrailer into a stage, which is how a travelling opera was safely shown to thousands of Lithuanians last autumn.
Other, long-term sustainability supporting activities, were also not forgotten. In 2020 the company doubled its intermodal transportation scope. Thanks to this change, CO2 emissions were reduced by 4%, equal to 8 million kilograms. Concerned about the carbon footprint reduction, together with 17 leading European companies and organizations, including IKEA, Unilever and Neste, Girteka Logistics founded the European Clean Trucking Alliance – a unique coalition encouraging the use of zero-emission vehicles.
Changes promising a breakthrough in the logistics sector – in the plans
The company also announces that the past year marked one of the most significant changes in the company’s history. Collaborating with the German software giant SAP, in 2020 Girteka Logistics began a complete business and operational systems digitalization process. Already around 55% of the European cargo transported by the company are assigned to an operation using an Artificial Intelligence tool. “Over the next three years we aim to modernize around 80% of internal processes, which will be advantageous to all our employees’ work, and, at the same time, without doubt, will improve the quality of our services,” shares E. Liachovičius.
In preparation for further growth, by the end of this year the organization also aims to complete the incremental structural changes. Once the changes are realized, the management of transportation companies will be consolidated in an organization Girteka Holding.
About Girteka Logistics
Girteka Logistics is the largest European asset-based transportation company, transporting more than 820 000 full truck loads (FTLs) every year. The company grew from 600 trucks in 2010 to 8 000 trucks in Europe, Scandinavia and CIS countries. With almost 19 000 professional employees, Girteka Logistics became a leading full truck load (FTL) transporter, chosen by the largest global companies.