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October 5, 2022
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DSV Road: Once Romania will join the Schengen Zone, our business will increase by 20% on average

Romania’s entry into the Schengen Area will bring numerous benefits for the local transport industry, including the elimination of border waiting time, and the increase of transport capacities and the number of orders, according to DSV Road, the third largest global provider of Transport and Logistics services in Europe. The company estimates that accession to Schengen will generate an average increase in business by 20%.

The beneficial effects of Romania’s entry into the Schengen Area will be felt immediately on the local transport and logistics market, believe the managers of the DSV Road company. Thus, the transport capacities of the carriers will increase significantly once the borders will be eliminated. Fuel costs will also decrease, given that the waiting time for trucks at the border, which is currently between 24 and 72 hours, will disappear, especially at the crossing points to Bulgaria (Calafat-Vidin and Giurgiu -Russia), but also towards Hungary.

“Romania’s presence in the Schengen Area will accelerate the development of the local economy. Thus, waiting times at the border will be significantly reduced, which produce cascading effects on the entire Romanian economy, which we all feel, both companies and individuals. Currently, exceeding daily driving times recorded by drivers, higher fuel consumption during waiting time and delays regarding the delivery of goods to customers lead both to the penalization of transporters, to the appearance of problems in supply or in the running of some production processes, and to the increasing costs for end customers. In addition, by eliminating the waiting times at the border with Hungary, the transit times for all our groupage lines to Western Europe will be shortened by at least 24 hours”, declares Sergiu Iordache, Managing Director at DSV Road.

At the same time, the accession of Romania to the Schengen Zone will increase external and internal competitiveness, optimize transport costs and increase local consumption. Other important effects of the presence in Schengen are an increased efficiency of the use of trucks, but also an increase in the availability of drivers. In Europe, the shortage of drivers increased by over 40% from 2020 to 2021, according to a study carried out by the International Road Transport Union (IRU), and with the elimination of borders, an improvement of up to 10% will be achieved.

In addition, by removing the borders, there will be greater fluidity of the European Union’s car fleet. Currently, there are blockages at the border also due to the EU Mobility Package regulation, whereby drivers are required to return to their country periodically, every few weeks.

“Obviously, the effects of accession to Schengen will also be felt in the DSV Road business. We estimate a 20% higher turnover by streamlining transport costs and increasing the number of trips. As DSV Road Romania manages major distribution contracts in Bulgaria, the strongest impact will be the shortening of the time at the border. It is not a random example because the presence in Schengen will influence short journeys, where the share of waiting time in the total journey time is higher. We look forward to Romania’s entry into the Schengen Area, a beneficial change for any transport operator and any company, which will significantly influence the local economy”, declares Mihai Teodorescu, Sergiu Iordache, Managing Director at DSV Road.

Also, the free movement of citizens in the Schengen member countries will increase the potential for citizens currently settled in Europe to return to Romania, believe the representatives of DSV Road, who want to attract to the team specialists from among Romanians who will resettle in the country.

It is also essential that, due to the lack of borders and the reduction of transportation time, the amount of carbon emissions will be considerably reduced, protecting the environment. Therefore, DSV Road has taken important steps in reducing pollution by offering customers the opportunity to choose sustainable transport services.

For more than 10 years, Romania has met the technical criteria for entering the Schengen Area, according to the Ministry of Foreign Affairs, and by joining it will have one of the longest borders. In August 2022, Germany claimed that Romania meets all the requirements and it will support our country to become a full member of the Schengen Zone.

 

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