Companies Dragon Maritime, Log Max and Kombi Pro have now been operating for a full year under the umbrella of the Danubia Group, which represents one of the key players in the Balkans and Central Europe, explains Danubia Group President Erich Cossutta in this interview
When he decided to leave a successful family business at the end of the 1990s, Erich Cossutta knew that he needed to develop maritime, rail and road segments of the supply chain simultaneously. Thanks to his extensive experience, a team of excellent associates, clear visions and strategic thinking, he proved to be an excellent interlocutor on the topics of transport and logistics, digitalisation, AI implementation and expansion to new markets.
Danubia is a recognised market leader in maritime transport, rail transport and terminal operations. Apart from the Balkans and Central Europe, where else do you operate?
— Danubia is a holding group that owns companies that are market leaders in maritime and inland transport and terminal operations.
We embarked on a major reorganisation of the group last year, so that now, under the umbrella of Danubia, we have Dragon, Log Max and Kombi Pro. We have consolidated around these three divisions everything that previously operated in a fragmented manner. Log Max now has the strongest presence in logistics and terminal operations, Kombi Pro focuses on rail transport, and Dragon is our division responsible for maritime transport.
We operate in the Balkans and Central Europe, while we have traditionally had a presence in China and are now expanding into the Persian Gulf. We are looking at Saudi Arabia with great interest, due to the opportunities it presents, while we are also planning to enter the Indian market very soon. Our goal is to control as many links in the supply chain as possible and to offer clients a service that encompasses the entire chain. We’ve been investing more intensively in infrastructure over the past few years —both rail and terminals, as well as trucks—because we want to have everything under one roof. Intermediary services without tangible assets, which have been prevalent in our industry, will either gradually disappear or be significantly reduced over the coming years.
Your market position and business success stem from your belief in the power of unity and dedication to a singular strategy?
— I come from a family with a long history in this industry. We started in 1936 in Trieste, but in the late 1990s – with knowledge, experience and a clear vision of what I wanted – I decided to embark on my own journey. The concept of intermodality was only just emerging at the time, but I had always known that my goal was to control as many elements of the supply chain as possible, because managing just one segment provides no real strategic advantage. That’s why I developed the maritime, rail and road components of the supply chain simultaneously, leading to the successful integration we have today.
I strongly believe in teamwork. The individuals who once led separate systems are still with us, and they all work closely together. I take great pride in having turned many talented soloists into one outstanding orchestra.
How is increasing global turbulence shaping the transport sector’s role in global trade?
— When I reflect on recent years, I always picture a supply chain manager at a German company and everything they have had to deal with over the past seven or eight years. First came the blockage of the Suez Canal, then came the Covid-19 pandemic, followed by wars in Ukraine and the Middle East – not to mention the Houthis and various other complicating factors.
For those of us in this industry, all these events have required extensive knowledge, experience, adaptability and improvisation to meet client demands. That’s why we believe that, in the near future, all companies will have to make strategic choices regarding their markets, deciding where to source their supplies and where to sell their goods. Geopolitical factors have forced us to reassess which destinations are more sustainable and more profitable for our businesses.
With proper planning, we should not face major disruptions over the next decade. The Western Balkans, Central Europe, Poland, Hungary and Serbia will likely become the preferred locations for major companies currently weighing up whether to continue investing in the Far East – where they could find themselves caught in a real physical or economic war – or to opt for closer and more stable markets.
Germany’s new supply chain act, obliging large German companies to ensure human rights and environmental standards are respected across their supply chains, represents a great opportunity for our region
From the perspective of, say, a German company, it is evident that its cargo is far more secure if it invests in a Balkan country than in opening a plant in China, from where shipments take 30 to 40 days to arrive. The logic is clear: we can transport cargo from Serbia to Stuttgart within 48 hours, the risks are minimal and the costs remain roughly the same as they were a decade ago.
Germany recently adopted a new supply chain act, which obliges companies that have over a thousand employees and headquarters in Germany to ensure human rights and environmental standards are respected across their supply chains. The objective of this law is to encourage companies to be more cautious in selecting their suppliers and to invest, where possible, in regions that have more transparent and sustainable supply chains, which is why I see in this development a great opportunity for our region.
Under your leadership, the Danubia Group has set sustainability standards for the sector?
— I believe the future of road transport will be limited to the first and last mile – most goods will be transported either by rail or by sea, while lorries will be used solely for transport between railway and maritime terminals and final destinations. For example, in the past, all cargo from the Port of Rijeka, which is Croatia’s main port, was transported to Serbia by road. It is today mostly moved by rail, while lorries are used only to deliver goods from the railway terminal to their final destination.
There is no need to elaborate on why rail transport is the better option – it runs on electricity, making it far less polluting than lorries, and a single train can transport significantly more cargo than a lorry.
What are your expectations when it comes to artificial intelligence, further digitalisation and automation?
— Digitalisation is crucial because clients want to operate in a digital environment with minimal telephone or traditional faceto- face contact. They want access to a platform that provides real-time insight into everything happening in transport and allows them to communicate with us directly. Reducing personal interactions increases efficiency and provides full visibility over the movement of their cargo.
Digitalisation will soon simplify and accelerate also customs clearance processes, which currently take one or two days, sometimes longer. Cargo currently waits, and although significant manual work is required, digitalisation will streamline and expedite these processes. Artificial intelligence will enhance analytics and help us operate more efficiently and swiftly. I don’t believe it will fundamentally change our business or reduce the number of employees, but it will ease workloads, improve forecasting and allow us to better anticipate our clients’ needs.
Customs automation has advanced significantly in China and the UK. Importers and exporters there apply directly to customs authorities for import or export declarations, and I believe we will soon see this system implemented across our region as well. Regarding digitalisation in the region, Serbia, along with Slovenia, is at the forefront of customs digitalisation, so I can say with confidence that we are on the right track.
