Lithuanian carriers want to leave their country

Lithuanian carriers want to leave their country

Protectionism of Western companies, the lack of staff, high level of bureaucracy, surprisingly expensive OCP and other similar problems convince Lithuanian carriers more and more that transferring their companies abroad is the best solution. It is apparent looking at the Lithuanian Association of road carriers Linava.

First the people leave, then the company and in the end – taxes

According to the association president, Edvardas Mikėnas, today in the transport sector not the companies compete but countries. The countries who create right conditions for businesses can successfully compete in the international arena for specialists and investments.

Lithuania is absent from among those countries. The Lithuanian companies understand this and feel threatened. That is why some of them slowly begin transferring their companies to more friendly countries" says the president of the Linava association.

Many Lithuanian transport companies have a branch registered abroad to which they move not only some of the employees and vehicles but also investments. With people come companies and, of course, taxes.

Poland – the largest competitor

Artūras Michejenka from DKV Euro Service Baltikum replies that emigration of transport companies from Lithuania is not a mass phenomenon but it's a new trend which will only speed up in the future.

Expert claims that Lithuania as a country, when it comes to the transport industry, loses to its competitor, Poland, where OCP rates are lower and the process of employing drivers from abroad – it's faster and easier.

Some companies open branches in the UE countries. That's how company owners develop their companies in these regions. Right now these are isolated cases but in the future this could seriously threaten the Lithuanian economy" - says A. Michejenka.

European barriers and regional sluggishness

Association president believes that one of the main reason for suffering of the country's transport is primarily the rapidly progressing and continuous restrictions from the European Union while Lithuania works slowly to support its entrepreneurs.

The A1 certificate is an example of such activities

For transport in Eastern European countries the driver must obtain special A1 certificate from the government. Right now if the documents are not submitted on time, you have to wait until October. It would be enough to hire more people to issue these certificates faster but so fat nothing has changed. We even suggested we will help but our proposal was rejected" – says E. Mikėnas.

A lot of Lithuanian trucks in Germany

Lithuanians feel very well in Western countries. German Federal Office for Freight Transport (BAG) published data according to which in the first half of 2017 the participation of Lithuanian trucks on paid German roads increased by 19.5%. This is the largest increase among all foreign vehicles. All in all vehicles from Lithuania have completed 0.328 billion kilometres in Germany.