The Covid19 pandemic has led to a surge in e-commerce, with the industry growing by 14% in Europe over the past year. Following the market demand, a new e-commerce project is currently being developed in the “TFS Trans” logistics center based in the territory of the Freeport of Riga in Kundziņsala. The project objective is to develop software which will help clients to significantly save on time and speed of goods delivery.
“The goods’ processing time and, consequently, the delivery time in e-commerce is extremely important. Sometimes goods are delivered from Amazon in Germany to Latvia within two days, while the receipt of shipments within Riga can often take up to seven days. The system developed by the “TFS Trans” will significantly accelerate the delivery of goods both within Latvia and the Baltics. In addition, we plan to offer e-commerce warehousing services not only to Baltic e-merchants, but also to large players in Asian countries who are interested in the Russian market. Eastern clients express their interest in this type of services in our region,” explained Mikhails Frolovs, Marketing Director of the “TFS Trans”.
The “TFS Trans” has named its e-commerce project “Jinn”. “We had to create a complex system of goods storage, accounting, management and analytics. The operations carried out by employees had to be aligned with those performed by robots and the huge amount of data sent by e-merchants, their clients and other parties involved in the process. As a result, e-merchants will have just to take care of the positioning and sale of their products in the market,” added M.Frolovs.
The most modern high-bay warehouse logistics center in the Baltics was opened in 2017 in Kundziņsala. With a large investment of more than 30 million euros, the “TFS Trans” logistics center is one of the largest, most technologically advanced and up-to-date facility in the Baltics, as well as the second largest in Eastern Europe. The logistics center is designed for storage of a wide range of cargo, both short-term and long-term, and it is especially suitable for sorting cargo and consolidating goods - combining goods from different consignors for one consignee.
The company's largest investor is the “Kraftool”, a manufacturer of industrial goods, hardware, electronics and telecommunications tools, using the “TFS Trans” warehouses primarily for B2B purposes. Implementing the new e-commerce project, the “TFS Trans” will offer its services to companies operating in the B2C segment, thus providing an opportunity for businesses to serve the end consumer more efficiently. The B2B business model involves big volumes of raw materials and products, while in the B2C segment the “TFS Trans” will provide logistics, warehousing and distribution services to manufacturers, traders and end users.
The main advantage of a high-bay warehouse is its capacity and speed of service. Total cargo throughput in the warehouse is 2500 pallet units/day, maximum capacity - 73,000 pallet places. In addition, the handling and assembly of pallets in the warehouse is fully automated, which significantly increases the speed of service. In the company's facility pallets with goods are moving at a speed of up to 60 kilometers per hour- it is 5 times faster than a modern man-operated loader.
The company's overall competitiveness is enhanced by the logistics center’s location in the free economic zone of the Freeport of Riga, which means that no taxes or fees have to be paid during the storage of goods, and document processing costs are also reduced.
Information for media
- liene.ozola [at] rop.lv, +371 670 308 53
- Freeport of Riga Authority
- 12 Kalpaka blvd, Riga, Latvia, LV-1010