Velibor Peulić, Logistics Consortium BiH: Times of Challenges and Opportunities for Domestic Carriers and the Transport Sector

Prof. Ph.D. Velibor Peulić, coordinator of the Logistics Consortium of BiH, asserted himself as the first man in the defense of the interests of the carrier, and in an interview for eKapija, he says that the media made a big contribution to their views getting wider and stronger visibility, and that they still have a lot of work to do to improve the position of transport and logistics companies in BiH.

We talked with him about the numerous difficulties that burden domestic carriers, and the Consortium has recently sent the Ministry of Communications and Transport of Bosnia and Herzegovina a number of conclusions that they consider important to address.

Among other things, they request that the center of excellence accredit and approve the work of the MKT of BiH, that drivers from Serbia and Montenegro can start working with an adequate certificate from those countries, to eliminate CEMT receipts, to solve the issue of the third plate, to limit the price of semi-trailers, the abolition of the monopoly on ATP certificates, the increase of the discount for using the highway to 50% and numerous other changes.

- Transport and logistics form the bloodstream of any economy. In Bosnia and Herzegovina this sector has huge potential, but unfortunately, there has been no systematic work on its strengthening and creation of a favorable business environment for more than twenty years. Lack of long-term strategies, slow infrastructure development and complex administrative procedures have led to a situation where carriers and logistics companies often operate in difficult conditions.

Nevertheless, we believe that we are facing a time of challenges, but also opportunities - especially through digitalization, regional cooperation, process modernization and strengthening of institutional support, which can give new dynamics to the sector and open the door to a stronger connection with the European market.

The state of transport and logistics in Bosnia and Herzegovina is still burdened by excess administrative procedures, high expenses and slow modernization. Although certain initiatives have been launched, such as the digitization of customs processes and discussions on business relief, they are still isolated measures without system support.

We lack strategic approach, a long-term infrastructure investment plan and a strong political will to truly de-clutter supply chains. Without serious changes, it will be difficult for us to catch up with the standards required by the regional and European markets. The Logistics Consortium of BiH is a non-profit gathering and association of legal entities, transport, logistics and forwarding providers, that through cooperation, coordination and competition, cooperate in a consortium with the aim of promoting and protecting common interests and participation in joint activities with the aim of strengthening competitiveness, cost optimization and business improvement within and outside Bosnia and Herzegovina.

- Limitations such as the 90/180 day rule are a serious obstacle for our carriers. Drivers from BiH are often treated as ordinary tourists, which creates a huge administrative and operational burden. The Logistics Consortium of Bosnia and Herzegovina recognized the seriousness of the problem and sent a proclamation to all associations and associations, bringing together more than 90% of carriers and logistics companies. Our common goal is clear: we demand the abolition of discriminatory interpretations of the 90/180 rule and relief from all indirect and direct costs caused by bad administrative practices.

With the aim of permanently solving the problem of discrimination of drivers from Bosnia and Herzegovina, we believe that Bosnia and Herzegovina must initiate a diplomatic dialogue with the European Union institutions, with active participation of the Ministry of Foreign Affairs and the Ministry of Transport and Communications. Our demand is that professional drivers from Bosnia and Herzegovina be provided with treatment that will be proportional, non-discriminatory and based on an understanding of their specific role in European logistics flows.

For professional drivers from third countries like Bosnia and Herzegovina, who perform work tasks on EU territory based on CEMT permits, bilateral agreements or transit rights, any application of a rule such as 90/180 must be proportionate, legally based and non-discriminatory. This legal argumentation can serve as a basis for appeals, bilateral negotiations and initiatives which aim to clearly demarcate the status of professional drivers from the status of tourists.

- Crossing borders today is one of the biggest bottlenecks in transport. On average, our transporters lose 14.5 hours at one border crossing, which on an annual level amounts to over 208 waiting hours per vehicle. This generates enormous losses and reduces competitiveness. We are focused on eliminating activities that are "causers" of retention, which are not justified.

- Driver shortage is a serious problem that threatens the stability of supply chains. The main reasons are an aggressive model of attracting drivers to the EU, promises are often not with actual income, the problem of the 90/180 rule, the problem of administrative barriers, inconsistency in the definition of "professional motor vehicle driver" role and place, in some cases, it is low incomes, unfavorable working conditions and the departure of young staff abroad. In the EU, 2.5% are drivers under 25 years of age, while more than 56% are drivers over 55 years of age, it certainly makes for a disadvantageous structure, and the barriers limiting the access of transport companies from the Balkans create a serious basis for migration flows, but we must stop this. Through dialogue with the EU, but decisive dialogue, restoring dignity, liberalization of access to the market, is currently limited with CEMT permits to four drives.

We signed an agreement with regional transport leaders, we share the same problems, we have the same intentions and objectives, and through synergy, we expect to solve the issues of joint action and one voice towards the EU. Mutual information exchange and joint coordination leads to a positive outcome.

Unfortunately, they have not been given adequate attention until now, but we believe that growing market needs will force decision-makers to invest in the diversification of transport modalities. The Logistics Consortium launched an initiative of dialogue and studies, how to integrate the door-to-door strategy with railway operators, so we worked out several scenarios for intermodal transport as a sustainable system in the future - river transport, the regional issue of the navigability of the Sava River, but also the strengthening of the port capacity infrastructure, the "slanted shores of the Brčko port", arrangement of the Sava River bed, etc.

- Cluster Logistika BiH consortium connects business entities, transport, logistics, freight forwarding and other related activities and related support organizations within the framework of geographically concentrated regional, traditional or other organizational formats, as well as other institutions, consortia and organizations that guarantee a critical mass of knowledge, technologies, resources and funds important for strengthening the competitiveness of individual enterprises, partners and the Consortium as a whole.

The main objectives of the work of the Consortium are the protection of the interests of road freight transporters in domestic and international road transport, protection of the interests of freight forwarding companies, logistics providers through active partnership with decision makers in the home areas and improving the business success of partners through the introduction of standards, cost optimization, models and forms of promoting best practices in the field of road freight transport, shipping and providing services to partners that contribute to their business goals. Our focus in the coming period will be on three strategic areas:

1. Alleviating the cost burden in order to facilitate business

2. Digitization of processes - application of eCMR and eFTI standards,

3. Green transition - promotion of environmentally sustainable transport,

4. Professionalization of personnel - strengthening the system of education and certification of drivers and logistics personnel.

The Consortium`s work is based on the principles of professionalism, equality, tolerance and equality, appreciation and understanding, professionalism and thoroughness, and it is deprived of all voluntarism, leadership, partial interests, political aspirations.