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Contract Between ViDi Group and BLG Logistics Group

In October 2009 a ceremonial concluding of the contract between ViDi Group and BLG Logistics Group about common venture establishment - BLG ViDi LOGISTICS, was held. The main goal of the enterprise is to form a modern logistics centre of the European level. Formation of a new business is actively supported by Kyiv City State Administration.

In a period of mutual instability in the economic field and the cancellation of many business acts, there is a very important and outstanding event for Ukraine taking place: the largest European logistics operator - German company BLG Logistics Group enters to the domestic Ukrainian market of auto transportation.

This is a result of concluding of the contract with ViDi Group that has considerable experience in finished vehicles logistics in Ukraine.

Collaboration shows positive trends in the development of the Ukrainian economy in common and auto transport in particular, and also the high degree of reliability of ViDi Group and its credibility as a powerful partner to the world's leading companies.

"Our company has been in long-term collaboration with VD Group that has proved itself as a reliable partner at the Ukrainian market. That is why it is decided to form a common venture, that will allow us to widen its position in the Eastern European market "- Frank Sturm, General Director of BLG Logistics Group noted.

These goals will be achieved by construction of logistic terminal of 31 ha for 16 000 cars in Kalinovka, Kyiv area. Formation of this centre will be implemented step by step and will be finished by the end of 2013.

Total investment will be EUR 28 million. As a result, of the stable expansion of the terminal, its capacity will reach 400 000 cars per year, which will undoubtedly increase the number of regular clients.
Moreover, the company has intensions to continue to use the existing terminal in Vyshneve, which primarily will serve as a logistics centre for the Kyiv region.

"We strive to offer our customers a European level of service in logistics, it allows them both to decrease prices and also greatly save their time" - Vitaliy Dzhurinsky, Chairman of the Board of ViDi Group, noted.
 
The formation of this company is of great importance not only for the car business, but also for the Ukrainian economy in general. After all, with the new terminal in the Kyiv region over four hundred new working places will be formed.

Additionally, thanks to the activity of the new common venture state budgets of different levels will receive not less then UAH 20 million of tax reductions per year. And thanks to the logistics terminal activity auto importers will deduct to the country's budget about UAH 2 billion per year.  
BLG Logistics Group - represented by logistic units BLG Automobile Logistics - proposes a range of logistic services for new and used cars. Logistic company has a net of ports in key strategic locations cargo. Turnover company car BLG Group in 2008 amounted to more than 6.7 million units. BLG Logistics manages own private rail transport provider for vehicles.



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