The TSL services market in Poland – Analysis and growth prospects – part 1

In 2002, the recessionary trends in the economy came to a halt. The year 2003 brought symptoms of a slight economic recovery. At the end of 2003, GDP grew by over 3% against the forecasted 2.3-2.9%. Towards the end of 2003, a significant increase in exports and a slight growth in investments were also recorded. However, the GDP growth did not lead to a decrease in unemployment, which may indicate weak foundations for the economic recovery.

In the TSL industry, a leading trend relative to the entire economy could be observed, as the market growth rate, measured by the ratio of sales revenues in 2002 to 2001, stood at 12.4%, more than doubling the dynamics of 2001. The average revenue dynamics in the group of companies generating over PLN 100 million in sales amounted to 7.5%. Companies generating between PLN 50-100 million developed most dynamically, at a rate of 23.9%, almost twice the average. The growth dynamics of companies with revenues of PLN 10-50 million also remained above average, at 18.6%. The weakest dynamics – 9.8% – were shown by companies with revenues below PLN 10 million. Significant fluctuations in market dynamics over previous years prove, on one hand, that the demand for TSL industry services increases under the conditions of a developing market economy, and on the other, the influence of consolidation activities on the market value. In 2002, mergers occurred or acquisitions were announced for three companies present on the Polish market: Servisco-DHL, Euroad, and P&O. In 2002, all shares of Servisco were purchased by Deutsche Post, which also became the owner of DHL. After the acquisition of Danzas, the consolidation process took place in subsequent stages. Completion is expected in 2005. However, a process of slow integration of both companies is already underway. In turn, Euroad, in which an investment fund invested, was ultimately sold to a Dutch company operating on international markets – VOS Logistics. P&O was acquired by the British concern Wincanton. Currently, actions are being taken towards the integration of Hartwig and Pekaes, or (alternatively) the sale of part of the shares to strategic investors. JAS-FBG remains interested in purchasing shares of PSM C. Hartwig Katowice. In Spedpol, in December 2003, BTL AB (100% owned by Schenker AG) bought out all shares belonging to the State Treasury. Currently, 99.2% of shares are held by BTL AB, and 0.8% are held by private owners. In this way, the privatization process of the current logistics operator was closed.

Employment dynamics in the analyzed companies reached 7.7%, which means that labor productivity in the TSL industry was also increasing. The value of revenue generated per employee increased by 4.6% (from PLN 334.12 thousand to PLN 319.53 thousand), and the value of gross profit per employee – by 18% (from PLN 9.46 thousand to PLN 11.17 thousand).

The analyzed companies mainly represented Polish capital (59 Polish companies). Foreign capital was represented by 45 companies – i.e., 43% (foreign or mixed). The most expansive in the industry are German companies, followed by Dutch, French, and Danish ones. British, Irish, Italian, Swedish, Greek, Swiss, Canadian, Finnish, Russian, and Belarusian-Chinese companies also appear individually on the Polish market. There is also a company with capital from Singapore. In the group of companies with over PLN 100 million in revenue, there are 13 companies with mixed and foreign capital (76%). In individual groups, separated based on the value of generated revenues, the share of companies with foreign capital decreases (in the group with revenues of 50-100 million PLN it constitutes 61%, in the group from 10-50 million PLN – 33%, and in the last group, below 10 million PLN – 16%). Based on the above information, it can be concluded that foreign capital is primarily located in large companies with the highest employment profitability. At the same time, the size and scope of the companies’ operations influence the choice of foreign capital allocation.