The biggest contribution of the Serbian transport sector is the fact that transport (in aggregate) is the largest Serbian exporter, and it is active despite all the risks resulting from the pandemic.
GRBA-PRPIĆ d.o.o. has over 20 years of experience in the transportation of goods in international road freight transport and is a leader in this sector, also in terms of the ISO 9001 standards, which the company has implemented with the view of achieving long-term strategic business improvement. From the very beginning of this family-owned company, Mr Grba has devoted himself to the development of the Serbian transport and is a member of the Board of Directors of the International Transport Business Association and Vice-President of the International Transport and Logistics Chamber of Commerce, both based in Belgrade. Thanks to his personal qualities and leadership skills, he represents the soul of the company and, as a successful manager, was the recipient of the prestigious EY (Ernst & Young) ‘Entrepreneur of the Year Award’ in 2015.
How did you organize your business activities and communication with your business partners and clients?
Due to the circumstances caused by the pandemic, the Serbian transport sector has suffered a significant decline in business. In these extraordinary circumstances, the operations of our company, GRBA-PRPIĆ d.o.o., are down to 80% of our regular business activities.
Due to the nature of our business, communication with business partners still takes place in a previously established manner, namely online and by telephone. Regarding the internal organization of business, we have implemented all measures and recommendations of the Government of the Republic of Serbia from the very first day of the state of emergency – we provided disinfection barriers, gloves, disposable masks and disinfectants.
How important is it for companies to stand in solidarity and help in these extraordinary circumstances?
Solidarity is a broader concept than donations, as each company has a task by first acting responsibly towards employees, associates and business partners.
In the light of what I have just said, GRBA-PRPIĆ d.o.o. paid the March salaries on time, as well as the related payroll taxes and contributions. Regardless of the government’s measures to assist the economy (The Official Gazette of the Republic of Serbia, No. 54/2020), corporate social responsibility requires that companies generate regular revenue for the state budget so that the state can continue to finance its expenditures. Accordingly, we did not seek fiscal benefits in the form of deferral of payment of payroll tax and contributions, because we will have to pay these obligations anyway, so our goal is not to defer payment of our liabilities but rather cover them in full and prove that we are worthy recipients of the AAA solvency excellence certificate which puts our company in the top domestic businesses.
Also, we pay all our subcontractors before the stipulated payment deadlines, which ensures financial stability of the partners we work with, and further chain liquidity and security along the “communicating vessels” principle.
Furthermore, in the previous period, the company has assisted the local community, local football club and other organizations and always gladly responded to all calls for donations from the Association.
Still, I think that the biggest contribution of the Serbian transport sector is the fact that transport (in aggregate) is the largest Serbian exporter, and it is active despite all the risks resulting from the pandemic. Serbian transport has ensured prompt import of goods from abroad and the export of Serbian goods, as a support to the supply activities on the territory of the Republic of Serbia and production activities of companies which continued manufacturing and exporting.
Another thing to consider is the fact that there are quite a few transport companies in Serbia and that they employ over 20,000 drivers, as well as a lot of administrative staff and staff of other job profiles (management, dispatch personnel, clerks, sales staff, vehicle maintenance employees, support workers, lawyers, economists, accountants, etc.).
Despite having an immeasurable economic importance, I also have to mention the so-called spill-over effect that transport companies have on many other economic segments in the Republic of Serbia, in terms of opening production chains and engaging other business activities (for instance, hiring maintenance staff, doing business with vehicle parts and equipment suppliers and being a client of the oil industry considering that one standard semi-trailer truck covers approximately 100,000km during one business year and uses close to 35,000 litres of fuel, which, in monetary terms, amounts to around EUR 37,000).
I did not mention this to illustrate it as a closed big number system, but just to show you how transport segment is an important driving force in the national GDP.
I also believe that we need to improve the communication with the line ministry to further support transport companies.
Specifically, domestic companies (by which I mean companies founded with domestic equity) are in an unequal position relative to foreign companies, since the government’s incentive is directed exclusively at foreign investors.
In terms of the industry I am in, the state does not encourage or subsidize the introduction of new technologies which is an aggravating circumstance and which further complicates the business of companies engaged in international road freight transport. Namely, licenses for transportation outside Serbia are conditioned by the renewal and improvement of the vehicle fleet. This expenditure is not subsidized and is not even treated as a tax credit from the aspect of tax regulations. In other words, purchasing a new vehicle (a new semi-trailer truck costs around EUR 100,000) and creating one job are not even treated as a business expense.
How do you spend your private time during the pandemic?
Transport business implies that we have to available to our clients and drivers 24/7, and this has not changed even during the state of emergency.
In terms of everything else, and as a responsible person, I follow the prescribed government measures in all aspects and do not perceive the current circumstances as “quarantine” but rather as a privilege to spend more time with my family, which is a rare opportunity.