Despite the existence of a single market and a customs union, the European logistics sector remains highly fragmented to this day. National characteristics, different technical systems, and legal requirements hinder the smooth movement of goods. At the same time, it is clear that value creation and supply chains no longer end at national borders – for logistics companies in both EU and non-EU countries. Armin Wagner, Senior Advisor for Sustainable Mobility at the Deutschen Gesellschaft für Internationale Zusammenarbeit (GIZ), a German Society for International Cooperation, is familiar with the difficulties faced by logistics and transport companies seeking to gain a foothold in the European Union or market. “In practice, this often involves very specific issues, from long waiting times at external EU borders to different customs clearance procedures. However, the bigger task is aligning national systems of non-EU countries so that they are compatible with European structures,” says Wagner. GIZ is currently supporting governments in EU candidate countries, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), in preparing for the European market and creating a common knowledge base.
Digitalisation plays a key role. Regulatory requirements must be met through appropriate technical solutions: “The EU has set itself the goal of simplifying and digitalising logistics in Europe, for example through the eFTI Regulation on Europe-wide paperless freight document exchange
in goods transport, which is currently being implemented,” says Armin Wagner. However, countries such as Ukraine, which are digitally savvy, have already made considerable efforts to digitalise their logistics in recent years. In doing so, they have relied on open solutions that are spreading rapidly. Against this backdrop, collaborative work on logistics at the EU and European levels is the right way forward. “The many small logistics companies with limited financial and technical resources can particularly benefit from open and interoperable solutions, as they allow them to integrate into the market more quickly.”
Entering new markets
The member companies of the Open Logistics Foundation from countries such as Slovenia and Romania, which joined the EU in 2004 and 2007, respectively, are also convinced that integration into European logistics systems can only be successful with open solutions. The involvement of Eastern European companies in the Foundation‘s Working Groups and projects is an expression of their specific interest in European integration through technology. “The early introduction of open source technologies and interoperability give us an opportunity to facilitate entry into new markets,” says Matjaž Auflič, Head of Development at TRINET Informatika, d.o.o., based in Ljubljana, Slovenia, who sees the company‘s membership in the Foundation as a stepping stone to strengthen its position in Europe. TRINET is one of the leading providers of software solutions for automated customs procedures and logistics on the Slovenian and Croatian markets. At the same time, according to Auflič, membership also helps the company to better keep pace with the changing regulatory environment in Europe.
Another important point, particularly for companies in Eastern Europe, is visibility within the pan-European logistics community. “Membership of the Open Logistics Foundation allows us to connect with leading European logistics and supply chain companies, develop strategic partnerships, and promote collaborative innovation,” says Razvan Perțicaș, Chief Executive Officer of CargoTrack. The Romanian company provides transport companies with digital solutions for GPS fleet monitoring, real-time vehicle tracking, and toll payment automation. “By working with the logistics community, we gain access to extensive knowledge bases, research results and technical standards. We can contribute to industry standards and regulations, promoting our operational efficiency in the EU. Ultimately, this strengthens our ability to provide efficient, scalable and integrated logistics solutions.” Membership in the Foundation also enhances brand reputation and market position in Europe.
Diversity of perspectives
The implementation of the eFTI Regulation is currently of particular interest to European companies. Through eFTI (Electronic Freight Transport Information), the European Union is establishing a Europe-wide framework to digitalise control and authorisation processes for freight transport by road, rail, water, and air. The regulation came into force in August 2020 and will take full effect from 2027. Initially, authorities will be required to accept electronic transport documents. However, companies will also be required to use the eFTI-compliant format when transmitting documents electronically. “The key thing now is to work towards a uniform, open solution that everyone can use,” says Jens Leveling, Technology Advisor at the Open Logistics Foundation. “To achieve this, we need a variety of perspectives from logistics companies across Europe and beyond. This is the only way to develop solutions that work technically and meet the specific requirements of different markets. On the other hand, this diversity means that
the resulting standards and systems are more likely to be interoperable.”
Armin Wagner from GIZ also believes that the Open Logistics Foundation’s work and engagement are of great interest to companies in both the EU and candidate countries. He says, “It is crucial for every company to understand how the European market works and to anticipate future developments at an early stage. Taking an active role in such initiatives is always worthwhile if you want to establish and grow your business in Europe in the long term.”
