“Now, between 2013 and 2015 is the period preceding the next boom, a good time for investments, where prices are good inclusively for entering the shareholding structure of various companies. In the case of transport companies, if they are rightly managed and run, then there is potential here as well,” said Mircea Vlah, the chief executive officer of Dumagas.
The company is entirely controlled by investment fund Bancroft. The fund took over the company this autumn, in the wake of a capital increase. The company was set up 18 years ago by Romanian entrepreneur Mihai Dugaesescu, who exited the business after the capital increase.
Dumagas, headquartered in Craiova, transports over 800,000 tons of freight annually. The company ships parts and cars for the automotive plant of Ford Romania in the wake of a contract sealed in 2009, but also delivers freight for Kaufland, Lidl, Carrefour, Ikea, Procter&Gamble and others.
Dumagas Transport generated revenue worth EUR44.2 million last year, down 17% on the year and posted net losses of EUR3.4 million, from EUR2.5 million in 2012.
“We’re now in the situation where we’re trying to make the company more efficient, to generate profit. As regards 2014 revenue, it will rise from last year, by around 4-5%,” said Vlah.
The CEO adds the target for next year is for the company to reach break-even.
In a cost-optimization move, the new CEO started a truck fleet renewal campaign. “We plan both to renew and expand the truck fleet. Our plan is to reach 500 trucks again”.
At present, the company has 420 operational trucks. Beside Lazar International, Dumagas is one of the three largest transport companies locally by fleet size.
To support the company’s growth, Dumagas wants to set up a unit in Turkey, one of the fastest-growing economies in the region.
“The current model, with a single entity in Craiova, is not enough. For this reason, we took a step toward expansion, in Istanbul”.
Beside attracting new clients in Europe, the company also plans to recruit further, in a bid to support growth. “We’re seeking specialized transport and logistics personnel as we have several new projects and we need specialized resources. We will recruit countrywide, inclusively in the major industrial centers such as Brasov, Timisoara or Cluj”, stated Mircea Vlah.
(English version by Catalina Apostoiu)