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MAG restructure to focus on core business

(Posted on 14/09/18)

On a recent visit to the Gdynia head office of Morska Agencja Gdynia (MAG), Vice President, Krzysztof Laskowski told IBJ, “We are currently undergoing a restructuring of the business because of the dynamic market we operate in. The company has to balance risks against margins in the various sectors we operate in as some activities may be of high risk, which is not reflected in the margins we generate.”

MAG is a major private shipping agency offering services in all Polish Ports and dealing in all aspects of international traffic. The company was founded in 1951 and is one of the oldest enterprises in the transport and logistics sector operating in Poland. Originally, MAG represented foreign shipping lines, shipowners and P&I insurance clubs in Poland. It also provided agency services for Polish vessels and over time extended its range of activity to include chartering ships, port shipments as well as becoming an employment agency for Polish mariners on ships under foreign flags.

The company is currently experiencing growth. Laskowski continued, “Last year we increased the number of ships handled by 15% to almost 1000 making us the number one port agent in Poland.”

With political and economic changes in Poland at the beginning of the 1990s, the company became employee-owned and was the first privatisation in the marine services sector in Poland. The changes became a stimulus for further development and with experience of operating in free-market conditions, the company also became involved in services such as rail, storage, distribution and customs handling. Over time, the company extended its range of activity to include chartering ships, port shipments as well as an employment agency for Polish mariners on ships under foreign flags.

“This year we expect to handle even more,” said Laskowski, “We are handling a lot of wood exports and believe that wood chip will follow. We also handle coke, steel plate, fertilizers, agri-products and aggregates along with many other bulk commodities. We previously operated a subsidiary, which traded coal, however, we withdrew due to price fluctuations on international markets. Now we handle coal imports as port agents.”

MAG’s agency team operate day and night and services include: assistance when vessels enter port and set sail; supervision over port operations; organization repairs; inspections and controls; ship documentation; change of crew, assistance in emergencies and various other activities.

MAG also operates its own universal terminal in Darłowo in the middle of the Polish coastline, where the reloading and storage of cereal grains, fertilizers, wood, aggregates, coal, steel as well as palletized and sacked goods is organised. The major asset of MAG’s port is the possibility of express handling of smaller batches of cargo, thanks to which the company is competitive in terms of price in comparison with neighbouring and larger ports. MAG has invested in the infrastructure of the port so that contracting parties from Poland and abroad can be sure that their cargos will be duly served. Further investments are plannedto extend the range of goods reloaded.

“Following our restructure, we will decide upon our future growth strategy,” said Laskowski, “However, our core business will remain unchanged.”