Two bigger investments are planned for 2023-2024, which were officially announced at ACE Logistics Group’s 30th Anniversary’s celebrations last autumn. For ACE Logistics Latvia construction of new premises is already started, that should be ready by the end of this year and ACE Logistics Lithuania plans a new terminal construction in Kaunas region in addition to existing one in Vilnius.
New branch for ACE Latvia
In Riga the rental contract is signed, and new premises should be ready for handing over according to the contract by the end of 2023. New facilities will give a lot of great advantages, such as bigger area – a total area of 6100m2 with 2500m2 terminal and 3600m2 of warehouse. New terminal will have 16 standard loading ramps, plus one van ramp and one extra large ramp (width 5,5m and height 3,5m). In addition to that there will be a modern three level offfice for administration, which will be around 570m2. New premises are located next to the Riga airport.
New facilities will have also upgraded Warehouse management system (WMS), which will assure ability to provide full 3PL logistic services in the warehouse. Latvia is located in the middle of Baltic region and close to Scandinavia, what makes the services more atractive for companies, who would like to have outsourced central warehouse or distribution center services for mentioned regions and Europe.
“2022 was a successful year for ACE Latvia. In comparison to 2021 the turnover increased by 15% and gross profit by 13%, however the total shipment number decreased a bit (3%). The total turnover was in 2022 around 11,4 million. Such numbers were presented mostly due to the geopolitical situation and changes in cargo flows, “ adds Karlis Kasparans, the managing director of ACE Latvia.
Additional terminal for ACE Lithuania
Another development of ACE Logistics is associated with a new, 4000 m2 cross dock type terminal for ACE Lithuania. It is expected to be completed within next 1-2 years in order to increase the company’s operational capacity and expand the range of serviced area. “ACE Logistics terminals currently are in Tallinn, Riga and Vilnius. The new terminal being designed in Kaunas will be a big step forward. It will be a special cross-dock type terminal with lot of (40) loading gates, intended for cargo quick redistribution, but not for long storage,” explains the managing director of the company ACE Lithuania, Ignas Puluikis.
The planned investment will reach up to 7 million euros. The terminal is now in the design stage, with construction expected to begin this year and opening could be mid to late next year. “Most probably Kaunas’ terminal will be in the future Lithuanian main terminal and Vilnius terminal will be regional. With both terminals, we will have more space and will be able to serve both – the vehicles and the incoming cargo flows faster,” explains the manager. He also hopes that the new terminal will allow them to enter the segment of larger partial loads.
ACE Logistics Lithuania ended last year with approximately 5% of decreased income, reaching up to 20,2 million euros. The impact of the war caused by Russia and the decrease in the volume of Chinese cargo carried by railways had such an impact on the company.
“The first quarter of last year, everyone managed to implement their plans, and then the influence of the war was felt,” said I. Puluikis “From April 2022, the turnover started to decrease and one of the most affected sectors was railways. We recovered some cargo lost via sea transport, but in terms of turnover, it did not fully compensate the decrease. The losses caused by the war started by Russia in Ukraine were partially exchanged by the small increase in the export of various industrial products from Lithuania to Germany, France and other countries”.
“Despite, that business environment is currently challenging, ACE is continuing its long-term strategical investment plans and investing to new sites in Riga and Kaunas region. In 2020 new branch was opened in Estonia, which proved to be a very right decision and timing. Modern facilities playing very important part for our process optimization, so that cargo flows can be handled with high efficiency level”, explains the head of ACE Logistics Group, Andres Matkur.