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MMD Serviss on Riga’s position as a logistics hub

25 October 2024 By Michael Huband

Riga has recently emerged as a transit hub, says MMD Serviss CEO Juris Narnickis, with the Latvian capital offering new logistics options.

Just a few years ago, Riga, the largest city in the Baltic States, was primarily focused on trade routes connecting Eastern and Western Europe. However, a few savvy companies have begun to recognise Riga as a logistics hub, connecting Central Europe, Scandinavian nations, the Caucasus and Central Asia.

MMD Serviss has been at the front of this new trend. With 28 years of experience, a 30,000 square metre warehouse and 360 employees handling over 10 million cases of beverages each year, it is a key player in Riga’s third-party-logistics industry. CEO Juris Narnickis gives db his perspective on Riga’s new position as a gateway city.

“People in the industry have undoubtedly noticed one of the most pressing issues of recent times—the shortage of trucks and the lack of warehouse space in Europe’s leading logistics centres,” he says. “This has significantly increased delivery times, which is, of course, something businesses strive to avoid.”

Equally important, says Narnickis, is the fact that “major transport routes are heavily congested, a critical factor when planning routes. It’s problematic when orders are delayed due to overcrowded transport networks, even when there is a strong demand. The potential for growth is enormous, particularly in regions like Scandinavia, where purchasing power is high, but this also applies elsewhere.

The reality is that all businesses in the region have been affected by the unstable security and economic situation, both in Europe and the Middle East. This is another crucial element to consider when planning business development, routes, and deliveries.”

Is there a solution?

Speaking to the drinks business, Narnickis explains: “What I can share from my side is that Riga, situated at the crossroads of major transit routes between Europe, the UK, Scandinavia, and Asia, has undergone a shift in business orientation in the past few years. This shift has led to new capacity becoming available in existing warehouses, making it easier to handle orders quickly and provide logistics services, even amidst challenges like vehicle shortages or congestion.”

Having worked in the logistics and transportation industry for over 20 years, he says that “the only constant thing in life is change, which should be seen as an opportunity”. Narnickis also believes that Riga is currently not being fully used as a logistics hub. “I see enormous potential for many companies that are now considering business development, exploring new markets, or optimising their existing operations and recognise that the traditional routes and approaches no longer bring the same results. That’s why I believe now is the perfect time to add Riga to your business map for operations, helping you save money, time, and stress,” he says.

Given the timing and the Christmas season approaching fast, MMD Serviss wants its customers “to be delighted by our services, not the other way around. To achieve this, we must prepare in advance by managing stock levels, gift wrapping supplies, transport arrangements, workforce availability and other details.”

The best time to think about the company’s plans for the challenging pre-holiday period? “Yesterday! And the second-best time is now,” says Narnickis. “We are confident that by leveraging Riga’s strategic advantages and MMD Serviss’ expertise, we can handle any unexpected surge in product flow, ensuring smooth and timely deliveries without disruptions. “By choosing Riga as your transit destination or a gateway to Europe, it is possible to avoid the pre-Christmas rush and stay ahead of the curve.”