Tomislav Bagarić: Six to ten thousand containers could pass through Slavonski Brod annually

On Thursday, the new international port of the European Union in Slavonski Brod was ceremoniously and officially opened, marking the largest investment in Slavonia, which connects river, road, and rail transport. The investment of 130 million kuna was co-financed by non-repayable funds from the European Union and a loan from HBOR. The main and sole concessionaire of the port is the leading logistics company from Kukuljanovo, Manšped, whose own maritime agency network spans 180 world ports, with container terminals in Rijeka and Zagreb, and now also in river transport. Tomislav Bagarić, a member of the Management Board of Manšped, commented on current global trends in logistics and announced further investments by Manšped in the Slavonian port, in ship cranes for handling river barges and mechanization for the container terminal.

What are the advantages of the port in Slavonski Brod compared to other ports?

– If we consider the location and advantages brought by the intersection of two pan-European corridors (C5 and 10), Slavonski Brod is perfectly positioned to logistically serve the economy of eastern Croatia, Bosnia and Herzegovina, southern Hungary, and western Serbia. According to our calculations, between six and ten thousand containers could pass through Slavonski Brod annually. The infrastructure, into which more than 130 million kuna has been invested, creates a connection point for road, rail, maritime, and river transport. With the start of trial operations in 2021, Manšped began regular rail shipments from the ports of Rijeka and Koper to Slavonski Brod. We have created a new product that has brought a significantly more favorable option for container transport in eastern Croatia, and despite having the largest fleet of over 300 freight vehicles, by engaging in rail transport, we aim to reduce harmful gas emissions and relieve freight transport from highways A3 and A6.

What is the current competitive position of Croatian ports, considering the congestion in overseas and European ports?

– Rijeka has great potential for further growth, and we can say that we have not even begun to tap into the potential of the Rijeka port, which expects the opening of a new terminal in 2024. Currently, we are facing global trade disruptions due to China’s ‘covid zero’ policy, which has slowed down the Chinese economy, shortages of raw materials and semi-finished products, and the energy crisis, which is most strongly affecting the European economy and, consequently, the world. When we talk about Croatian ports, the greatest potential for further growth and prospects for further investments lies precisely in the port of Rijeka. Rijeka is in a geostrategic position that the government must support with investments in transport infrastructure. A good example is the investments in transport infrastructure in Slavonski Brod and the successful government dialogue with the economy, from which the creation of a competitive advantage for the Rijeka port and Croatia as a new transport route is expected.

Is there an increased demand among Croatian importers and exporters for the services of domestic logistics companies?

– We are proud that we have established ourselves as the leading logistics provider in Croatia over the past 30 years, and we have achieved this thanks to the trust of the Croatian economy. We can say that the pandemic has strengthened the ties between importers/exporters and their logistics providers, with a particular focus on logistics providers with their own logistics capacities and infrastructure. Manšped generates 47 percent of its revenue from foreign partners. Specifically, we provide foreign investors with quality and reliable infrastructure of our warehouses, terminals, and fleet when investing in Croatia and the region.

Global trends favor rail transport. Do you notice such trends in your business?

– Yes, we feel a strong increase in demand for rail transport, both from other destinations in Europe and the Far East, as well as on shorter routes within Croatia and the region. In recent years, all business entities have placed a strong emphasis on reducing harmful gas emissions, and we believe that the combination of maritime container, rail, and road transport ensures a chain of reliable services with control over harmful gas emissions. Manšped has supported all attempts at alternative energy sources for freight transport, and in 2020 we opened a supply station for LNG freight vehicles at our terminal in Kukuljanovo near Rijeka, and we also have several LNG vehicles in our fleet. However, we must constantly invest in new transport technologies.

What are your predictions for logistics trends in the future?

– We are confident that disruptions will continue in the near future, but we believe that the instability of 2021 will not be repeated. The fact is that maritime freight rates from China have increased tenfold; however, this has only prompted importers to turn to suppliers from closer surroundings and raised awareness in the economy that it is unhealthy and unnatural to rely solely on Chinese or Indian production. In such an environment, logistics is taking on an increasingly important role in the economy.