The year 2023 brought a challenging market environment. Continued inflation, low unemployment rates and a shortage of professional drivers – challenges VCHD Cargo faced – were common to many eurozone countries. “In the Czech Republic, there was a 0.4 percent decline in GDP, and the 10.7 percent inflation in our industry was often not passed on to customers,” says Ing. Petr Kozel, CEO and Chairman of the Board of VCHD Cargo a. s., and adds, “as a result of the Ukrainian-Russian war conflict, there has been a long-term shortage of drivers from these countries on the market, and this, together with the retirement of an entire generation of drivers, has further exacerbated the upward pressure on wages. On top of this, the excise duty on diesel was raised again, and at the end of the year there was a sharp increase in the German toll. These were all factors that significantly impacted our cash flow last year. In spite of this, we managed to maintain our growth curve.” Exchange rate differences also had an impact on the results of the company, which trades 70 percent in euros.
The VCHD Cargo Group achieved a 3 percent increase in turnover, with German companies contributing the most. Völker Logistik, the subsidiary that VCHD Cargo acquired by acquisition in 2021, had a record year. Its turnover increased by 34 percent to €5,8 million. VCHD Cargo GmbH did similarly well, closing 2023 with a nearly 16 percent increase in turnover (€ 6,3 million). The Czech company VCHD Cargo a.s. generated sales of over €38,6 million, down 2.7 percent from 2022.
The VCHD Cargo Group invested significantly last year despite the challenging conditions in the freight market. The largest share of investments went into renewing the fleet of trucks and technology to speed up delivery processes. In total, the company acquired 109 tractors and trailers, including swap bodies, and handling equipment for unloading at the customer’s site. Additional funding went into branch renovations and refurbishments. The investment amounted to more than €8,3 million.
The company also addressed the sustainable aspects of its business. “We are aware of the trends and pressure to reduce the carbon footprint of freight transport and are paying attention to this issue. We are preparing for the opportunities that technological advances will bring to long-haul transport and are testing alternative fuel vehicles that are gradually entering the market,” explains Ing. Petr Kozel Jr., Chief Operating Officer and member of the Board of Directors of VCHD Cargo a.s. Last year, the company tested trucks with electric drive and LPG, and further tests are underway this year.
In 2023, the VCHD Cargo Group will employ a total of 436 people, of which 318 in the Czech Republic and 118 in Germany. The company has been systematically developing and training them for a number of years, particularly with regard to safe and economical driving of professional drivers. It has set up programmes and training courses for its employees that appropriately complement those required by law. To increase comfort on the road, the company has company flats along the backbone routes throughout Europe, which its drivers use to spend quality time during mandatory breaks and which also allow for quick crew changes. “Our experienced people are our biggest competitive advantage, so we try to create conditions that make their demanding work as easy as possible,” adds Ing. Petr Kozel Jr.
This includes the high standard of the fleet, which includes 242 towing vehicles and dozens of trailers. All of them meet the highest emission standard EUR VI and are equipped with a number of safety features to protect the driver and promote road safety. The company operates more than 5,000 transports per month and guarantees delivery within 24/48 hours to almost any destination in Europe.
The company will continue to renew its fleet in 2024. Planned investments will also be made in photovoltaics at branches and the installation of charging stations. The company will continue to focus on training its people and on employee programmes and will complete further digitisation projects.
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The company VCHD Cargo a.s. was founded in 1997 and specializes in exports and domestic ground transportation. The company has branches in Kladno, Brno and Havlíčková Brod and carries out transport on 112 regular European scheduled connections to many countries. It provides full truckload and LTL export and import transportation and terminal-to-terminal or supplier-to-customer domestic transportation with regular departures. The company VCHD Cargo a.s. operates its own fleet with more than 240 vehicles, including those for transporting ADR shipments and shipments with a regulated temperature regime. The company is also a carrier approved by the Civil Aviation Authority of the Czech Republic for the transport of the cargo of postal items subjected to security control. VCHD Cargo operates its own gas station, professional service and a washing line for passenger and truck vehicles.
In 2019, it founded VCHD Cargo a.s. in Germany by the subsidiary VCHD Cargo GmbH. It then bought the German transport company Völker Logistik in 2021. The entire VCHD Cargo group achieved a gross turnover of 1.281 million crowns in 2023 and currently employs almost 440 people in the Czech Republic and abroad. Further information is available at http://www.vchd.cz/cs
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