A "barrage" of investments are being launched in domestic freight transport and logistics, aiming at the country's emergence as a transit hub of South-Eastern Europe, combined with the strengthening of the competitiveness of the internal market due to the rise of e-commerce and courier services.

The above were highlighted, among others, in the context of ITC 2024, 7th Infrastructure and Transport Conference, by Grigoris Sklikas, CEO of the ELTA Group, Dimitris Kalligeris, Senior Vice President Supply Chain (GR) of OB-Streem (formerly Streem Global), Vassilis Maglaras, CEO of "Thriasio Emporematic Center", Yannis Sarantitis, President of D. Chairman of the Board and CEO of SARMED Logistics; and Socrates Baltas, President of REDEPLAN.

MERGE OF ELTA AND ELTA COURIER

The merger of ELTA Courier with ELTA will be completed within September, which will be a great opportunity for optimal customer service, according to Grigoris Sklikas, CEO of ELTA Group.

As he said, until now, "the narrow operating framework, with inaction by the State, did not allow the partnership of these two "sister" companies", which, after their merger, will be able to operate under the same legal and operational framework, with multiple benefits for customers.

Referring to the benefits of this merger, Mr Sklikas referred on the one hand to the avoidance of multiple costs for the companies themselves, which were forced to maintain the same structures to serve the same customer.

On the other hand, he referred to the improvement of the level of service, as he said, "we will be able to offer courier services to a larger part of the Greek population".

At the same time, he noted that the 145 courier service outlets can reach 1,000 within the period of the merger between ELTA and ELTA Courier, while the goal is to exceed 1,600 service points within 2 years.

He emphasized that the Group is already fully developing and using this new framework in relation to how the new law on the subsidiaries of the State Treasury affects the ELTA Group.

As he said, the major elements introduced by this legal framework are: firstly: the possibility to negotiate in the market on similar terms with other competing companies; and secondly: the attraction of executives to staff the company's operations, while he left open the possibility of wider partnerships with other companies.

Finally, Mr. Sklikas gave big news by inviting companies in the sector to use the "backbone" of ELTA, i.e. the wide network of forwarding services that ELTA has nationwide.

STREEM GLOBAL

OB-Streem is the new name of the platform resulting from the integration of the Veinoglou Group with H.I.G.'s Streem Global logistics platform, which already includes the companies of the Makios Group, Unit, Contrade and Nami of Serbia.

OB-Streem, the consolidation of which is expected to be completed in early 2025, has a presence in 9 countries, starting from Greece and Cyprus and reaching Hungary, with the aim of eventually ending up in central Europe, specifically Germany.

"Grace's geostrategic position makes it a hub for attracting international flows and investments. These characteristics highlight it as a strong transit centre in the southeastern Mediterranean," said Dimitris Kalligeris, Senior Vice President Supply Chain (GR) of OB-Streem, explaining the vision behind the consolidation of the companies.

"The aim of the project is to create a logistics platform that can connect the gates of Greece with central Europe. To make this possible requires the utilisation of large handling flows, as well as the creation of strong networks and large-scale hubs," he said.

The Hull Logistics Center, a logistics hub that Streem Development is building at the former Aspropyrgos Steelworks, will start construction by the year 2025.

The Hull Logistics Center will be the first tri-modal hub in Greece, connecting a coastal frontage with roads, a railway line and a 150,000-square-meter warehouse complex.

"The completion of the consolidation of the companies and the creation of a single operating entity in Greece and the Balkans is a priority for the Group.

We aim to attract international flows that will strengthen the country's role in the global supply chain," Kalligeris said.

THEC

Vassilis Maglaras, the CEO of the company, emphasized the significance of the Thriasian Freight Centre (THEK) for Greece's combined transport, which will increase the nation's geopolitical power in the global supply chain.

The THEC, with the Goldair - ETVA VIPE consortium as the contractor, as Mr. Maglaras argued, is recognized, in the most official way, as a strategic project for SE Europe and not only for Greece, since, as he said, the supply chain is a critical point for the security of both the trade chain and production.

Maglaras explained that the Thriasio I project is now of strategic importance, not only because the US has shown significant interest in completing the project through its financing but also because, he noted, it will create new opportunities in the country's supply chain.

He said that commercial discussions for the lease of the warehouses of the THEC are in full swing, with interest being particularly high, as the characteristics of the center now make it a "monopoly" in the region, as it is directly connected to the train, has large storage facilities and is located very close to important infrastructure such as the airport and the port. At the same time, he said, it will have all the "green" features that make it ideal for large international companies looking to grow in the market.

According to Maglaras, Thriasio will help the development of the wider region and other productive sectors, as large investments create their own autonomous ecosystem, while it will also open up new trade routes and partnerships.

As he said: "It gives us great pleasure that a major financial institution from the US wants to actively participate in this project, recognising us as a strategic infrastructure for the region."

Finally, he commented that through the geopolitical crisis, Greece has emerged as a pillar of peace, stability and economic prosperity.

Regarding the broader strategy of the Goldair Group, Mr. Maglaras commented that: "The Group is firmly oriented towards the triple bottom line: Investment, Extroversion, and Governance, as a crisis can always be an opportunity. The Group is steadily investing in new warehouses and with the completion of the THEK project, Goldair will enter a more dynamic phase of growth and will become the dominant player in the Greek logistics market", said Mr. Maglaras.

SARMED

Greece's position in the supply chain and logistics has clearly strengthened in recent years, as Yannis Sarantitis, Chairman of the Board and CEO of SARMED Logistics, stressed.

It is characteristic, as he stressed, that based on the recent World Bank evaluation, our country has risen from 42nd to 19th place in the relevant global index.

"In recent years, the narrative that Greece is a gateway and transit trade between Europe and Asia has been capitalized on," Sarantitis stressed.

According to Sarantitis, the key factors for the country's strengthening are the development of the port of Piraeus, the recovery of the economy after years of crisis and the intensification of investments.

He also described the development of e-commerce and consumption, highlighting the critical role of supply chains as well as investments by the major companies in the sector in terms of technology and infrastructure as a catalyst.

Asked about the bottlenecks, the Chairman of the Board and CEO of SARMED Logistics stood on the low maturity of reforms for simplifying processes, the lagging investment in individual critical infrastructure, especially in railways, and the lag in digital transformation.

Regarding the company's performance, Sarantitis noted that an almost three-year cycle of capacity development was recently completed, with total investment amounting to EUR 20 million and annual turnover more than doubling.

Among other things, SARMED Logistics has introduced around 80,000 sqm of enclosed storage facilities, of which 15,000 sqm are cold storage chambers and 10,000 sqm are specialised E-Commerce management facilities.

REDEPLAN

REDEPLAN President Socrates Baltas spoke about the importance of logistics infrastructure and the need for investments that adhere to ESG standards.

Baltas said logistics is the second largest industry in terms of contribution to domestic GDP and observed that there are obvious signs of improving infrastructure as there is huge demand for the development of building infrastructure that follows ESG standards and seeks to be state of the art.

He commented that the infrastructure of individual local infrastructure also plays an important role as it affects the operational performance of a logistics business.

He went on to add that a company that implements ESG standards significantly improves its competitive position.

Regarding what has been happening over the last year, Baltas noted that the State is keeping the issue of Business Parks high on the agenda by proceeding with important tenders through TAIPED, such as the logistics park in Fili and the relocation of the transport companies of Eleonas, as well as the corresponding park in the former Gonou camp in Thessaloniki.

He concluded by saying that over the last 20 years there has been a gradual paradigm shift in real estate logistics, as the owner is no longer, usually, the user.