Employment, Financial Services, Good for Business, Latvia, Logistics, Transport

Lursoft has found out that, for instance, only 139 new transportation and logistics enterprises were registered in 2003, whereas already in 2004, the number of newly-registered enterprises increased up to 191, while continuing to grow every year, and 442 new enterprises operating in the industry were registered in 2007. True though, the number of new enterprises decreased during the crisis; yet, an increase in the activity has been observed once again as of 2010, reaching its record high in 2011, when 636 new enterprises operating in the transportation and logistics industry were founded.

In analysing the areas of activity that are the most popular among the enterprises operating in the transportation and logistics industry, it is to highlight freight transport by road amounting to almost 72% of the entire industry, whereas, the second largest proportion in the transportation and logistics industry is taken up by other transportation support activities (20.60%) which comprise enterprises that represent the activities of customs agents, brokerage activities, activities of forwarders and air-cargo agents, etc.

In studying the enterprises operating in the transportation and logistics industry, which were able to achieve the largest turnover in recent years, it is to highlight freight air transport, for which the average turnover per enterprise has never dropped below EUR 100 thousand over the last five years; true though, the turnover of air freight carriers has significantly decreased over the last five years. For instance, it amounted to EUR 327.3 thousand per enterprise in 2010, whereas last year, it amounted to EUR 126.8 thousand only.

It is to be added that practically all transportation and logistics areas have experienced a drop in the average turnover over the last five years, with exception of freight transport by road, for which the average turnover per enterprise has increased by 33.2%, showing a quite stable tendency over the last two years. According to Lursoft calculations, the turnover of one transportation and logistics enterprise amounted to EUR 89.664 thousand last year, which is by 1.29% more than a year before.

Transportation and logistics industry in Latvia, proportion of enterprises of the industry in regions, %

In 2013, transportation and logistics enterprises increased the average profit by 12.05%, as suggested by Lursoft study. Last year, a single enterprise operating in the industry closed the year with the average profit of EUR 437. The largest earners among the enterprises of the industry were merchants operating in the area of other transportation support activities (profit of EUR 1256), leaving behind air freight carriers with EUR 975. Nonetheless, it is to be added that, if compared to 2012, the average profit of air freight carriers per enterprise decreased almost by four times last year. Moreover, the said enterprises operated with varying degrees of success over the last five years — gaining both profit and losses.

The growth and development of the transportation and logistics industry over the last five years are vividly reflected by an increase in the number of persons employed in this industry. Lursoft has calculated that the number of persons working in the industry has increased by 36.80% over the last five years, reaching the number of 45,581 employees. The most rapid growth in the number of employees was observed in 2011, when the greatest number of enterprises was registered in the industry. In 2011, the number of persons employed in the transportation and logistics industry increased by 14.48%, if compared to 2010. Over the recent years, an increase in the number of employees was less significant, yet it still shows positive tendency, while increasing every year.

However, it is to be added that over the recent years the average number of persons employed by one enterprise was rather stable, without showing any special changes; thus, it can be concluded that an increase in the number of persons employed in the transportation and logistics industry is mostly related to the registration of new enterprises of the industry rather than to the significant increase in the number of employees at the enterprises, which have been working for several years already. The highest average number of employees has been observed among enterprises operating in the area of cargo handling (the average number of persons employed by one enterprise is four people) for several years already, whereas a twice smaller number of employees was registered last year with the enterprises operating in the area of other transportation support activities and sea and coastal freight water transport.