Sitemap

Comment

Pandemic Push For Digitalisation And Automation

As was seen during the pandemic, online sales and the digitalisation of business operations were both a source of stress and an opportunity for those logistics companies that were open to innovations and digitalisation, as well as the automation of storage operations

Freight transport and logistics are seen as important drivers of economic development and key ingredients of improved competitiveness, economic growth and employment for any country. Furthermore, developments in logistics and transport go hand-in-hand with the implementation of new technologies, R&D and a highly qualified workforce.

According to the World Bank’s Logistics Performance Index (LPI), which is the weighted average of country scores in terms of the efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs; quality of trade and transport-related infrastructure (e.g., ports, railroads, roads, information technology), ease of arranging competitively priced shipments; the competence and quality of logistics services (e.g., transport operators, customs brokers), the ability to track and trace consignments and the timeliness of shipments in reaching their destination within scheduled or expected delivery times, Serbia had a rating of 2.84 out of 5 in 2018, which is the latest year for which data are available. This is slightly less favourable than 2015, when that figure stood at 2.96.

Apart from road transport, which is developing at a relatively high pace in Serbia, other forms of transport (rail, water and air) are still in their infancy when it comes to the transport of goods, which represents a serious obstacle to attracting global supply chains. As of 2018, rail transport in Serbia and the Western Balkans has been recognised as one of the priorities of the EU Connectivity Agenda.

Although some progress has been made, border procedures remain complicated and time consuming, while trade and nontrade barriers are significant and result in considerable delays and losses in transport and logistics.

the industry expects the state to take further steps to upgrade the business environment, bringing predictability to regulations and laws, and increasing investments in the development of intermodal transport

At present, due to the pace of infrastructure development, both domestic and foreign logistics companies and logistics centres are mostly concentrated in the area of Belgrade and other larger cities, whereas other parts of Serbia remain insufficiently developed in terms of logistics. These are serious constrains for an industry that is facing an increased push from value chains to shorten procedures and allow for smaller and more frequent deliveries, with very short and strict deadlines, and high penalties.

As was seen during the pandemic, online sales and the digitalisation of business operations were both a source of stress and an opportunity for those logistics companies that were open to innovations and digitalisation, as well as, for example, the automation of storage operations.

As expected, the pandemic has hit local companies harder than multinational ones.

Moreover, the pandemic hit those companies that specialise in certain procedures harder, while those with portfolios that feature a wider range of logistics services fared better.

In certain forms of transport, such as rail and river transport, there has been a noticeable drop in handling goods like agricultural products, mineral fertilisers, petroleum products etc. Yet, as confirmed by recent investments in 2020 and 2021, the industry is experiencing intensive growth and it is realistic to expect this growth to be even higher in the future.

According to real estate consultancy company CBS International, the logistics and industrial market was one of the most progressive and fastest-growing real estate market segments, which showed the greatest resilience even under the altered circumstances caused by the pandemic. The observed space for growth arises from the low level of operations, i.e., significantly lower logistics stock per capita than in the West, booming e-commerce and a short supply of available space on the Serbian market.

Now that the situation has somewhat normalised, the industry expects the state to take further steps to upgrade the business environment, bringing predictability to regulations and laws, and increasing investments in the development of intermodal transport.

Naturally, it is also important for the current programme to construct and renew traffic infrastructure to continue, and for the state to proceed with addressing the problems of huge delays at border crossings, both on the Serbian side and on the side of neighbouring countries.

CorD Recommends

More...

Comment by Zoran Panović

The Absurdity of Reality

Amid the unfolding upheaval surrounding Trump’s return to the White House, mass Student-led protests have erupted in Serbia. The trigger was a tragedy at...

Florian Bieber, Professor for Southeast European History and Politics at the University of Graz and director of the Centre for Southeast European Studies

Autocratic Regimes Spark Mass Protests

Protests in Slovakia, Georgia and Serbia stem from different causes, but reflect broader political frustration and often inspire one another There have been large protest...

Vladan Marjanović, journalist of weekly news magazine Radar

Violence Threatens from Above and Below

With Trump’s return to the White House, the world has entered a period in which the power of state repression, based on the violating...

Slobodan G. Markovich, Faculty of Political Science of the University of Belgrade

The Mutiny of Zoomers and the Belgrade Student Protests

Gen Z in the West and Serbia seeks security and respect, expecting institutions – and not politicians – to deliver. Using likes, dislikes and...

News

Neoplanta Celebrates New Life with Generous Gesture

In a touching display of community spirit, Neoplanta, a renowned food company based in Novi Sad, once again marked...

The Hermitage Days are Being Held Again in Belgrade in 2025

The Hermitage Days in Serbia represent a unique international cultural project that will take place from February 19 to...

AgroBelgrade 2025 – A Hub for Innovation and Trade in Agriculture and Horticulture

Over 500 exhibitors will converge at the three-day AgroBelgrade 2025, bringing together the best of Eastern Europe’s fruit, vegetable,...

Djokovic into Australian Open Semifinals After Victory Over Alcaraz

The best Serbian tennis player, Novak Djokovic, secured his place in the Australian Open semifinals after an incredibly thrilling...

UK Surges to Second in Global Investment Rankings, Offering Hope Amid Economic Uncertainty

In a remarkable shift, the UK has surged to second place in global investment rankings, overtaking Germany, China, and...

The Hermitage Days are Being Held Again in Belgrade in 2025

The Hermitage Days in Serbia represent a unique international cultural project that will take place from February 19 to...

Djokovic into Australian Open Semifinals After Victory Over Alcaraz

The best Serbian tennis player, Novak Djokovic, secured his place in the Australian Open semifinals after an incredibly thrilling...

UK Surges to Second in Global Investment Rankings, Offering Hope Amid Economic Uncertainty

In a remarkable shift, the UK has surged to second place in global investment rankings, overtaking Germany, China, and...

Orban Visits Belgrade: Hungary and Serbia Aim for Affordable Energy for All

Hungarian Prime Minister Viktor Orban emphasized the joint goal of Hungary and Serbia to make energy accessible to citizens...

Nigeria Joins BRICS as a Partner Country

Nigeria has been admitted to BRICS as a partner country, the Brazilian Ministry of Foreign Affairs announced. Brazil currently...

The Hermitage Days are Being Held Again in Belgrade in 2025

The Hermitage Days in Serbia represent a unique international cultural project that will take place from February 19 to...

Djokovic into Australian Open Semifinals After Victory Over Alcaraz

The best Serbian tennis player, Novak Djokovic, secured his place in the Australian Open semifinals after an incredibly thrilling...

UK Surges to Second in Global Investment Rankings, Offering Hope Amid Economic Uncertainty

In a remarkable shift, the UK has surged to second place in global investment rankings, overtaking Germany, China, and...

Orban Visits Belgrade: Hungary and Serbia Aim for Affordable Energy for All

Hungarian Prime Minister Viktor Orban emphasized the joint goal of Hungary and Serbia to make energy accessible to citizens...

Nigeria Joins BRICS as a Partner Country

Nigeria has been admitted to BRICS as a partner country, the Brazilian Ministry of Foreign Affairs announced. Brazil currently...