RABEN GROUP: 2023 SUMMARY

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 Janusz Aniol, Italy Regional Director di Raben Italy S.r.l.. - 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.

Raben in Italy

In 2023, Raben Italy continued to consolidate its position in the industry, keeping its "We connect Europe" mission alive through a series of successes in international land, sea and air transportation.

Overland shipping continues to form the core of Raben Group's operations in Italy. During the year, the company formed a new partnership with Streck Transport AG, strengthening its presence in Central Europe and improving connectivity between Italy and Switzerland. In addition, new direct daily connections were activated from Cornaredo to Budapest, with the possibility of shipping to Bulgaria as well. These developments, along with other expansions, contributed to a significant increase in shipment volume, which reached a total of 326,629 shipments and 638,724 tons at the end of the year. Branches distributed throughout Italy, particularly the hubs in Cornaredo, Verona and Bologna, played a key role in this success.

In the Sea & Air segment, Raben Italy recorded significant results, with a total of 3,759 shipments by sea and 4,264 shipments by air during the year. Shipments by air were mainly driven by the Milan and Florence hubs, which accounted for about 91 percent of total air shipments. The company implemented new sea services to Israel and Pakistan and consolidated its position in pre-existing markets, such as Latin America and Mexico, through strategic local partnerships. In addition, the launch of two new weekly air consolidations to Doha and Bahrain helped further strengthen Raben Italy's presence in the international market.

ESG

Even in 2023, Raben Group continued to pose with commitment to sustainability, which has a significant impact on its business direction and its importance is constantly growing. The company is committed to operating in line with ESG indicators, namely caring for the environment (Environmental) and society (Social), and respecting corporate governance (Governance). In last year's "Driving ESG Ambitions Forward" report, Raben presented the degree to which it has achieved six of the United Nations Sustainable Development Goals, highlighting commitments such as women's participation in the company, ensuring a safe working environment, and combating climate change.

Raben Group has invested in building zero-emission "green" warehouses by installing photovoltaic panels at its sites in several European countries. The company has initiated projects to reduce emissions in transportation, collaborating with IKEA Industry and Volvo Trucks to transport with electric trucks and experimenting with vehicles powered by alternative fuels such as the HVO 100. It has also implemented environmental projects such as creating a green oasis in Raben Logistics Slovakia's logistics park in Nové Mesto nad Váh.

On a social level, Raben Group is involved in the fight against food waste, collaborating with national branches of the Federation of Food Banks to transport food for charity: thanks to the partnership with Banco Alimentare Lombardia, for example, a total of 400,000 kg of food was saved from waste in 2023. Initiatives such as the Noble Gift in Poland and the Christmas Convoy in Germany have brought gifts and aid to thousands of needy families. Raben Trans European Hungary donated thousands of laptops to needy children, families and teachers in cooperation with Partners Hungary Foundation.