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We meet a rare breed on the Isle of Sheppey:
Page 60
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a substantial British operator which specialises in running to Eastern Europe.
Croome Goldstar Logistics (CGL) fields 60 trucks, chiefly 40 tonne drawbar rigs, and it positively thrives in the EU's new eastern markets. 'We carry voluminous products," enthuses MD David Croome, "and we're looking forward to 60-tonne drawbars across Europe.'' The firm runs tilts, curtainsiders, and boxes; operations director James Colson tells us: "They're all demountable which gives us total flexibility." He explains that trailers can return to Sheppey from as far afield as Leeds (where they have a second depot) and Cornwall for consolidation en route to Eastern Europe.
This firm does handle domestic work, but its history and current operations are dominated by excursions to countries like Bulgaria, Romania, and Serbia.
So how on earth did CGL break into such far-flung markets? Croome enlightens us: 'The business has been developed over 30 years. Business has come from word of mouth recommendation. In the early 1970s we were sending vehicles to Bulgaria and Iraq; we used to take goods to the British embassies. From the very beginning, we grew up in international transport.
"When the Soviet Union broke up, we were already established — and we continue to operate in this market without any problems."
Subcontractors are an important element of the operation; Croome and Colson have just returned from Eastern Europe where they have been checking potential recruits.
"We investigate them and see if they are of the right quality. Then we take them on if they are appropriate," says Croome. This time they covered 14,000km in 10 days meeting a variety of hauliers. "You cannot beat face-to-face meetings," Colson adds.
CGI2s import/export work is split 50/50. Incoming goods include hanging garments, furniture, jet engines for servicing and food products. Exports
include packaging, furniture, electronics and RollsRoyce aeroplane engines.
These days 98% of Croome's drivers are from Eastern Europe. Many UK operators denigrate these incomers, but Croome and Colson have no problem with the professionalism of their eastern recruits. "Lithuanian drivers have to be trained mechanics," Croome points out. Foreign personnel can become homesick, and so drivers are rotated between England and their respective countries every three or four weeks.
"We have been employing Lithuanian drivers since 1997," Colson reports. At that time it was not part of the EU, but the company was in no danger of flouting employment rules, because the drivers were based in Lithuania.
With its Eastern European niche so well established, does Croome worry that a freer market will threaten his business? "No. It is a good development," he says."Competition is not from our brothers in the UK, it is from Eastern Europe. We are still ahead, but it is not easy."
Clearly, you need to add more strings to your bow in markets like these. Croome staff are multi-lingual, and they need to understand Eastern European culture.
Every extra layer of expertise is necessary to offset the complications of long-distance work. For example, despite the EU's open-market philosophy, CGL has to pay the German Maut tolls. 'We are still paying massive taxes of this type," Croome complains.-And Eastern European countries have cottoned on to these revenue streams too," Colson reports.
Not all Eastern European states are EU members, of course. Corruption has always contaminated this region — CGL drivers are used to being stung for cash by Bulgarian or Romanian border guards.
An obvious cure for this would be further EU expansion, which would no doubt bring a new set of threats and opportunities. Meanwhile, Croome sums up the current situation: "Everybody is swarming like bees around a honey pot."