ESG, investments and international connections chart the path forward
The year 2023 in Raben Group was focused on consolidation in existing markets through the construction of new facilities and expansion of existing locations, the development of international connections and, above all, the start of the Eurohub concept. The logistics operator also boasts significant ESG and IT security projects.
2023 was significantly different from previous years. We have chosen a different path of development: without acquisitions, however, focusing on investments in our existing markets, digitalization and ESG projects - both in terms of real estate and the fleet - summarizes Ewald Raben, CEO Raben Group. - This last point is very important not only for us, but also for many of our customers. We aim to be their partner in logistics every step of the way: to support by servicing their business and overcoming supply chain challenges, additionally to help our clients to achieve their sustainability goals. Together with our fantastic team, we faced up to the difficulties that the past year brought so that our customers could focus on what matters most to them - he adds.
In 2023, the main industries served by Raben Group included food, automotive, technology, chemicals, trade, non-food FMCG and others. The shares of services in the business mix have changed only slightly compared to 2022: road transport traditionally ranked first (65%, of which more than half was domestic), followed by contract logistics (13%), FTL & Intermodal (9%), Fresh Logistics (6%), sea & air (2%) and 4PL (2%) and other (3%). The logistics operator ended last year with revenues of almost €2 billion euro.
The logistics industry, like many others, has recently experienced dynamic change and considerable unpredictability. Significant disruption in global supply chains is a major challenge. However, it is worth looking at these difficulties as opportunities to develop and improve our services. Above all, it is crucial for us to ensure high quality and stability in uncertain times. We strive to be a flexible partner for our customers that adapts quickly to change and offers logistics ‘with a human face’, which is possible thanks to the great commitment of our teams - explains Wojciech Szafran, managing director of Raben Logistics. - Reacting to the economic situation and the needs of our customers while taking into account our acquisitions and investments, we continue to focus heavily on the development of international connections and we are systematically launching new lines. This allows us to reach more places in Europe directly; not only the big ones, but also smaller economic centres. This is appreciated by our customers because such comprehensiveness and scale of operations means not only better distribution options for them, but also time savings and the possibility to focus on developing their own business, while Raben - their logistics partner - takes care of the rest.
Raben in Europe
A milestone for the operator was the implementation of a new structure in the first quarter of 2023. Six warehouses assumed the function of Eurohubs – central points in the Raben network, which are responsible for consolidating groupage cargo for European linehaul traffic. They complement the fixed, direct transport routes and guarantee well-timed connections between all the company's warehouses in Europe. Eurohub status was assigned to: Sarstedt (service to Scandinavia), Mönchengladbach (direction: northern France, Benelux, UK, Ireland), Fellbach (direction: Spain, Portugal, the rest of France) and Aichach (direction: Austria, Italy, Poland, Czechia) in Germany, Legnica in Poland (connections inside this market and to the Baltic States) and Rokycany in Czechia (direction: South-Eastern Europe). These depots are characterised by capacity, location and infrastructure dedicated to handling international traffic more efficiently and in a more environmentally friendly manner. They offer more than 130 direct connections between the listed points, common Transport Management System (TMS) and cross-docking capacity which complements our 1.6 million sq. m in Europe. All this allowed Raben Group to react more flexibly to changes in freight volumes and, above all, to reduce lead times. The operator is able to offer all customers the added value of reaching all European destinations as quickly as possible - within 24 to 96 hours, depending on the distance. However, Raben not only developing its infrastructure, but also company is focusing on improving customer service processes in all business units, since it continually puts the customer at the heart of our business.
More Raben Group locations appeared on the map of Europe, some of which are zero-emission facilities. The forerunner in this area was the warehouse in Oss, near Raben headquarters in the Netherlands, which was completed in early 2023. It offers 13,000 sq m for storage and contract logistics. Equally innovative is the logistics centre in Herzogenburg, Austria, the construction of which began last year (planned completion date - Q2 of this year). Owned by Raben Bexity and ideally located, it will include 14,000 sq m of space for racking and block storage, cross-docking, order picking and dangerous goods. In addition, it will be equipped with a photovoltaic installation to generate electricity and power vehicle charging stations.
Raben recorded extremely dynamic growth in Romania. In the middle of the year, the local company started using a warehouse in Oradea (already the ninth in the Romanian market) with the capacity of 1,300 sq m. The facility in Cluj, on the other hand, was significantly remodelled: its parameters are now 3,000 sq m of capacity and eight ramps. The result of these changes is an increase in Raben Romania's operational capacity and, in response to customer needs, the launch of 13 new connections to key locations in Europe.
Other important investments in the region are also worth mentioning. In 2023, the expansion of the cross-dock warehouse in Dunaharaszti, Hungary, was completed, increasing its capacity to more than 7,000 sq m and the number of ramps to 70. This will not only allow more pallets to be stored, but also handle 20-30% more vehicles of various types. Raben Logistics Slovakia relocated its warehouse to Senec, where it uses the capacity of 8,600 sq m. In turn in Ukraine, despite the war which is now in its second year, Raben is still operating and assisting its customers with their business. Transports in this direction encountered various difficulties, however the Raben Ukraine and Raben East teams constantly monitored the situation and flexibly supported their customers.
There was also a lot going on in the Baltic States. In Lithuania, the local company moved into a new facility in Kaunas, which includes 6409 sq m of warehouse capacity (for cross-docking and contract logistics) and 800 sq m of office space. A new terminal is also planned in Riga, Latvia.
Last year, companies previously acquired in the Netherlands, Germany, Austria or Italy were already successfully integrated into the rest of the Group. Raben has focused on strengthening its national networks and improving service quality. All this, combined with the reorganisation of the structure to include Eurohubs and numerous investments, created a solid foundation for the development of international connections. At the end of 2023, Raben had almost 600 international lines in Europe (including more than 120 on the Poland-Germany direction), which means an increase in the offer of around 5% in twelve months. During all that period, additional flow analyses were carried out, which resulted in the reorganisation of the selected connections to improve delivery times or cost efficiency.
Service improvement activities have been complemented by the development of the IT infrastructure, raising the level of information security and employee security awareness. These activities have taken place, among other things, through the effective implementation and maintenance of security measures in individual areas, including the identification and removal of vulnerabilities, in accordance with the ISO 27001 standard. These issues have the highest priority for Raben.
Raben in Germany
In 2023, the economic downturn was strongly felt in Europe’s largest market, but it nevertheless remains crucial for Raben Group as evidenced for example by the location of the Eurohubs - as many as four out of six are located in Germany. This is also where the highest number of investment projects was carried out and the most innovations were implemented in the name of environmental protection.
Their list opens with Herborn where an ultra-modern, zero-emission logistics centre with the total capacity of 28,360 sq m was commissioned in January 2023 (including 5,600 sq m for handling and cross-docks). Just one month later, a new 25,000 sq m depot was opened in Aichach near Augsburg (of which 4,000 sq m with 42 ramps is designed for cross-docking), operating from the outset as Eurohub. Raben Trans European Germany started the second quarter with the opening of a location in Mittenwalde (OT Ragow), offering 9700 sq m of cross-dock capacity and 16,800 sq m of contract logistics space. The depot in Neutraubling near Regensburg, which was inaugurated in January this year, also boasts zero emissions thanks to a photovoltaic installation on the roof. This facility consists of a 5,000 sq m cross-dock warehouse equipped with 48 ramps, and a 700 sq m office building.
Raben in Poland
For Raben companies in Poland, 2023 was also an intensive year. Since the second quarter, a state-of-the-art warehouse facility for handling temperature-controlled fresh goods (cross-dock) with the area of over 2,300 sq m has been operating in Robakowo near Poznań. The investment included the construction of a cross-dock warehouse with a two-storey office area, a 150 kWp photovoltaic installation, the necessary infrastructure and an internal communication system. Thanks to this project, Fresh Logistics Polska has a cross-dock warehouse of nearly 4,300 sq m at its disposal. This is the first Raben Group-owned facility in Poland to meet zero emission standards. In November, in turn, the ground was ceremonially broken for the construction of a new Fresh Logistics Polska warehouse in Łomża where a modern distribution centre will be built, including a high-storage warehouse with controlled temperature of over 3825 sq m, a cross-dock warehouse (2859 sq m) and almost 300 sq m of office space. The new facility is scheduled to open in the second half of this year.
In June 2023, the Częstochowa depot of Raben Logistics Polska moved to a new location in the Hillwood Polska logistics centre, occupying 5100 sq m of warehouse and office space. In September, Raben and Kärcher celebrated the opening of a new warehouse capacity in Chlebnia. Operations for this customer are carried out on an 8,000 sq m site. At the end of the year, Raben Logistics Polska also opened a warehouse in Swadzim near Poznań, increasing its warehouse capacity by a further 12,000 sq m. The construction of zero-emission warehouses in Choroszcz near Białystok, Kalisz, Poznań and Wiskitki was also initiated in 2023.
ESG
Sustainability had a major impact on the direction Raben Group is taking for yet another year - and its importance is steadily growing. The company attaches great importance to operating in line with ESG indicators, i.e. caring for the environment (Environmental) and society (Social) as well as adhering to corporate governance (Governance). In last year's report 'Driving ESG Ambitions Forward', it presented the extent to which six of the seventeen UN Sustainable Development Goals are being met, including tasks related to women's participation and position in the company (5.5), ensuring a safe working environment (8.8) and tackling climate change (13.2).
The already mentioned 'green' Raben Group warehouses have contributed to climate protection. Already several years ago, the company took the decision to develop all its own facilities as zero-emission - this is now an investment standard. It is keen to use photovoltaics: panels were installed on warehouses in Germany, the Netherlands, Austria, Czechia and Poland. However, where Raben leases space, it tries to implement as many environmentally friendly solutions as possible.
Another very important area is projects to reduce emissions in transport. Launched in autumn 2022, the project between IKEA Industry, Volvo Trucks and Raben Group continued last year. Transport between the two IKEA factories using an electric truck already produced such promising results in the first few months that two more were added in July 2023. In parallel, electric vehicle trials were conducted in urban traffic in Hanover - the trucks were charged at the Raben warehouse and at an external fast charging station. The use of vehicles running entirely on alternative fuels (HVO 100, Hydrotreated Vegetable Oil) in transport was also tested - eight in Germany (Hamburg) and five in the Netherlands. The experience gathered was positive.
The project of the Raben Logistics Slovakia depot located in Nové Mesto nad Váh, which was realised together with Cromwell, is also a part of the environmental activities. A green oasis was created in the logistics park to support the ecosystem there.
In the field of social activities, it is worth mentioning, for instance, Raben Group’s involvement in the fight against food waste. The companies in Poland, Czechia and Italy cooperate with the national branches of the Federation of Food Banks and they transported almost 750 tonnes of food for charity last year alone. In Poland, the logistics operator was a partner of the Noble Gift for the fifth time in 2023. During the Weekend of Miracles, over 30 trucks travelled almost 9000 km and transported over 600 pallets to about 50 destinations all over Poland. As a result, more than 1000 families from all over Poland were able to enjoy Christmas presents. A similar campaign was launched in Germany, from where the traditional Christmas Convoy set off in early December. 260 German volunteers gave more than 143,000 children from Eastern Europe an unforgettable Christmas.
In turn, Raben Trans European Hungary joined forces with the local organisation Partners Hungary Foundation (PHA). Through it, they donated thousands of laptops to children in need, their families and teachers, enabling them to learn and work.
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Klaudyna Polanowska - Skrzypek
PR Manager
klaudyna.polanowska-skrzypek@raben-group.com
+48 61 898 8307