Andrei Saveliev: I consider the year 2009 to be a mere success!

This year was significant for companies operating in the customs area not only by a world crisis, but also by a customs brokers market consolidation. Not everybody managed to enter the Register of Customs Brokers in 2009. GC Green Way retained the right to provide services for customs clearance. Andrei Saveliev, CEO of JSC Green Way shared information on achievements of the group of companies in the passing year in the traditional December interview to PortNews.

- Andrei Ruslanovich, have you already summed up the work in this crisis year of 2009? What has it brought to your company?

- There is no doubt the most significant result of this year is the tightening of relationships between the Federal Customs Service (FCS) and customs brokers. Customs has now more tough approach to the issuance of bank guarantees or cash collateral to obtain a license customs brokers. Guarantees and warranties of the various funds are no longer valid. Now a company provides a pledge of 50 million rubles to customs or resorts to a bank guarantee. However, financial institutions require the deposit to the same amount. As it concerns quite big sum of money, more than 200 customs brokers were unable to provide appropriate security and had to leave the Register. In the end of the year only the largest companies stayed in the Register of customs brokers.

For us, this was a positive factor: the demand for our services has increased, we have gotten more customers, we have made additional income. Still the global crisis has changed the structure of demand for services of customs brokers. Small customers could not keep "afloat" and significantly reduced the number of orders. Now the large companies are our basic customers, interested in cargo transportation. Although we lost part of our contracts this year, we managed to keep the license, with help of which we attracted new clients. Therefore, the expected reduce of financial and economic indicators for the Group Green Way did not happen this year. By the end of the year we have increased by 50% amount of processed goods as of the last year, totaling 25 thousand teus. Financial results can be compared to the previous year. I find the year 2009 to be successful.

- Can we say that you and other large companies –customs brokers will benefit from the new customs requirements?

- Undoubtedly. Good - for large companies, bad - for the small ones.

- What are your current customers?

- Still about 90% of all customs transactions GC Green Way provides to the companies importing containerized cargo. This is very perspective and at the same time, the most vulnerable segment of the transport market in crisis period, because in the containers being taken construction goods and other consumer goods for which demand has fallen.

Also we arrange transfer of oversized cargo, conduct often unique cargo operations. We continue to cooperate in equipment transportation sphere with such top companies as Gazprom (complex combined transportation to the North and South, in the Astrakhan and Urengoy). An interesting project was implemented together with OAO Metrostroy this year. We complied with the contract for the delivery of a unique tunnel shield at the tunnel construction in St. Petersburg metro. For the Civil Aviation Institute we perform the customs clearance of small planes delivered from the U.S., which will be used by young pilots for training purposes.

- The group of companies Green Way has its offices abroad. Did they show good results this year?

- According to statistics the volume of cargo transportation from Finland has significantly declined. However, the logistical terminal of group Green Way in the port of Kotka (Finland) managed to show effective work in 2009, reaching its design capacity. The terminal runs almost at 100% capacity, there is no free space there. Around 250 teus are handled in port of Finland every month. There is a railway line and we use it actively. Besides road transportation, we also provide rail transportation of goods from Finland to Russia, working together with JSC RZD in this direction.

Chinese office deals mainly with freight forwarding in China and assists headquarter office in Petersburg in freight establishment, if it isrequired.

- In 2009, GK Green Way has opened a warehouse in the Moscow region. Have you loaded it?

- We managed to launch a new warehouse project in a crisis period. By the way our network does not have a special regime of work. In late summer, we rented the whole complex to one company for one year. It is not easy to find a tenant, but we were able to offer favorable terms, attracting a tenant.

- Do you agree with the opinion that examination of foreign trade participants by the FCS this year was more thorough?

- I would not say that customs procedures have changed a lot. The processing of documents is carried out at higher level. Now we have to provide more and more different documents at requests of the Customs. We are responsible to Customs for providing a package of documents. That is why we increased our staff, hired more experienced employees. In a recession period it perhaps sounds very weird.

- Had the customs clearance term changed?

- Yes. Before the customs clearance term used to be about 2 days, now this period has increased to an average of 3-4 days. It happens that the cargo can be released from customs in one day, and sometimes it takes more than a week. Everything depends on the number of questions from customs referred to the goods. For example, if we transfer complicated technological equipment, the Customs may request its description. Documents must be provided in a single format and translated into Russian.

- In general, did the cost of transportation of goods in 2009 changed in comparison with 2008?

- Cargo transportation in 2009 became cheaper, because the demand for freight transport has declined.

-We have not raised prices for its customers this year. In our market rates have changed a little: customs brokers prefer to take risks upon themselves and to support those few customers who have kept their business in crisis.