Pall-Ex Romania passes 3 million Milestone

Xpediator, (AIM: XPD), a leading provider of freight and logistics management services across the UK and Central and Eastern Europe, is pleased to announce that the Group’s Pall-Ex franchise in Romania achieved a significant milestone this month having delivered 3 million pallets since it was established in 2012.

Pall-Ex Romania is the palletised freight network in Romania, offering an express palletised freight distribution service to any part of the country within 24 hours. In the UK there are 9 national pallet services for customers to choose from, in Romania, there is only Pall-Ex Romania which has proven to be an advantageous position.

Operating as a franchisee of Pall-Ex Group, Pall-Ex Romania follows a similar business model with single or multiple pallets being transported by members. Pall-Ex has 39 members all who are well established Romanian regional hauliers who together provide a national distribution service. Pallets are delivered by members from individual regions to the central hub in Sibiu where they are grouped and delivered by another member based in the destination postal region, alongside other pallets intended for the same location. Grouping pallet deliveries bound for the same place provides a highly cost-effective transport solution for Pall-Ex Romania’s 4000 regular customers. The express palletised freight distribution service continues to grow on the back of sustained demand for just in time express deliveries, a trend to reduce stocks and a growth of online retailing. This is a proven solution across many European countries and one that consolidates flows of freight and saves fuel and reduces the carbon footprint.

In 2019, the Group opened a new cross-dock facility in Sibiu, which is located in the centre of Romania, to support increased demand as well as provide capacity for future expansion. A very successful business, Pall-Ex Romania has grown rapidly from transporting 868 pallets in its first month of trading in January 2012 to over 60,000 pallets on average per month in 2019. In March 2020, Pall-Ex transported just under 75,000 pallets.

Stephen Blyth, Chief Executive Office of Xpediator, said:

“Pall-Ex Romania is a formidable pallet transport solutions business and continues to expand year on year.  As the only palletised freight network in Romania, it is ideally placed and we have consistently invested into the business to maintain and expand upon this position. There is still substantial scope within Romania to grow and we also have the option to operate the same pallet delivery service in neighbouring countries under the Pall-Ex franchisee licence. We expect it won’t be long before we transport our 4,000,000th pallet.”

Kevin Buchanan, Group CEO, Pall-Ex Group comments:

“Pall-Ex Romania continues to go from strength-to-strength and is a pivotal partner in Pall-Ex Group’s International expansion. We pride ourselves on providing a sector-leading palletised freight distribution solution, Pall-Ex Romania emulates our quality ethos and has shown significant growth and profitability since they launched in 2012.

A huge congratulations to everyone within the business on reaching this momentous milestone. As a Group, we look forward to working together, winning together and achieving further successes as our new Core Operational System launches in early 2021.”

02 05 2020
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