News

The impact of the recession on major Continental road transport companies was brought home this week with the news that Dutch carrier Vos Logistics, one of the largest operators in Europe, is further reducing its truck fleet from 1,700 to 1,300 units as part of a major restructuring of its operations that started in the fourth quarter of 2008.

It is also cutting its permanent staff to 2,300 full-time employees and reducing the working hours of 60 members of staff in the Netherlands.

The firm says it is adapting its organisation in response to the unpredictable demand: "The measures have created an efficient and healthy company, able to respond effectively to the extremely fluctuating demand for transport."

Vos also says that its financial position has been further bolstered following agreement with financial parties to extend its current financing arrangements to 2010. It has improved its guaranteed capital with €36m and its balance sheet has been considerably strengthened. The cost related to this restructuring will be charged to the result for 2008. "The 2008 financial year will therefore be closed with a loss, due in the main to non-recurring expenses," it says.

Frank Verhoeven, CEO, and Ben Vos, CFO of Vos Logistics, say: "We are pleased we have been able to reach agreement with our stakeholders on our restructuring plan so quickly and so constructively. It is proof that all parties are confident with our approach and the measures we are  taking to guarantee the continuity of Vos Logistics. This restructuring has laid a robust base for a healthy company."

The Dutch haulage and warehousing giant insists it will continue to concentrate on retaining its position in the volume and bulk segment of the European transport market but adds: "We are also seeking selective growth in logistics services in specific niche markets."