Ħal Far groupage complex should no longer be under the control of the Customs Department – and should be open round the clock, according to the head of Express Logigroup Jonathan Vella.
Mr Vella has invested heavily in his company, growing from a laptop on a desk and one truck to hundreds of clients and 30 trucks in just two years.
The company carved out a niche for itself handling food and pharmaceuticals, both of which require special handling with regards to factors like temperate control and contamination.
“We handle things like flowers and oysters. Can you imagine how the client feels to have these brought down here as fast as possible only to be told that they must wait a day or more to be cleared by Ħal Far – especially when these are coming from the EU?
“Finance Minister Edward Scicluna talks about cargo from the EU being considered the same way as cargo coming from Gozo. The whole concept of sending groupage cargo to Ħal Far is nonsense!” Mr Vella said.
He objects on various grounds. The main argument is that cargo originating in the EU – which has a so-called ‘C’ status – should not even have to go through Ħal Far in the first place.
The minister’s arguments are to be taken on board. And the reality is that very little of it does, as most operators will admit – as long as they are not identified – that they bypass Ħal Far completely, especially given the paltry fine imposed if the law were enforced.
“And if I do have to use the groupage complex and pay €12,000 a year for a warehouse there, then should I not have access to it whenever I – or my client – wants?” he said.
Express Logigroup does not have its own warehouse at Ħal Far, and has to share with another operator. It applied for its own but after a few months was turned down, and must share for now with another company. Mr Vella is urging the authorities to revisit the 2003 legal notice which established the groupage complex, as part of a holistic plan, especially now that so much emphasis is being put on Malta as a shipping and logistics hub.
We need to distinguish between cargo which has C-status and which does not. We need to ensure that the Customs Department can deploy its resources where they are most needed, where there is most risk
“We have to look at all the three streams of cargo brought to Malta: accompanied freight on the catamaran; Ro-Ro on Grimaldi; and containers at the Freeport. We need to distinguish between cargo which has C-status and which does not. We need to ensure that the Customs Department can deploy its resources where they are most needed, where there is most risk,” he said.
His frustration is clear. He wants to raise standards and insists that he is willing to put his money where his mouth is, for example by centralising his operations at a warehouse at Ħal Far, and investing in temperature-control. However, he does not see the point of doing this unless he has 24/7 access.
“Ideally the complex should be liberalised and given to the private sector to run. Customs will always have the right to monitor and check any cargo, after all.
“It should be enlarged – perhaps by relocating other entities in the area which do not need such a strategic location. Companies could then centralise all their operations there, making it cost-effective for them, as well as rationalising freight on the roads.
“You could then attract investment in temperature control and ensure that hazardous waste is completely segregated. It could really work...” he concluded.
At a glance
The company has three main spheres of operation. Cold Moves is aimed at pharmaceuticals, using trailers with temperature probes installed. These offer both refrigerated cargo and controlled ambient temperate requirements.
Daily Fresh carries fresh produce, most of which comes from Italy. Express Logigroup is also offering cross-border transport to other countries.
Just in Time is a service aimed at speed, where the company competes with courier services and airfreight.
Cargo which requires temperature-control needs a completely different approach, covering every step of the way from supplier to consignee.
“At the end of the day, the client wants peace of mind that everything is 100 per cent safe, and with cargo like food and pharma, this means certainty that the temperate has always been within the specified range,” he said.
Mr Vella recalls one incident on a Sunday evening when the electricity supply to a truck loaded with ice cream was inadvertently disconnected when it was already on a vessel bound for Malta.
“We were alerted through automation – here in Malta – as soon as the temperature started dropping and were able to take immediate action, sending someone on board, and we saved the cargo,” he said. Another aspect is segregation to ensure that there has been no contamination.
Apart from equipment and systems, processes are crucial and Express Logigroup is currently finalising its ISO certification.
At the moment, half the company’s work overseas is done through hand-picked contractors but as the economies of scale improve, the trend is to take over more and more of the operations itself. It will join up with a company in Milan next month to take over space within a 4,000 sq.m. warehouse, which is divided into three cells for dry and hazardous goods, food and pharmaceuticals.
“The three streams of goods are handled completely separately and completely differently, from different loading bays and processes, to staff,” Mr Vella explained.
Express Logigroup is also adding new functions to its website by the end of the year – including a news stream of snippets relating to products and services which might impact its clients. It has also ditched its ‘tracking’ function as it prefers to deal with its customers directly over the phone, notifying that at the main stages of pick-up, transit and delivery.
The website will also have an in-built calculator which will enable customers to calculate the cost of groupage collection, merely by inputting the postcode, weight and volume.
www.expresslogigroup.com