Dragon Maritime Group was founded 20 years ago, with its 4 offices located in Koper, Rijeka, Belgrade, and Sarajevo, and we specialize in maritime agency services, focusing on Central Europe and the Balkan region. The company has positioned itself as a leader in its industry, and Marko Škraljsky, General Manager, told Diplomacy & Commerce that their goal for the next five years is to achieve similar progress, particularly through the implementation of new digital technologies. In the continuation of the interview, Mr. Škraljsky reveals more about the company’s plans, challenges, and what sets them apart from the competition.
- How would you explain your market position in relation to the competition, and what actually makes the difference?Exactly – 20 years of doing business in the region, with a continuous upward trend in every respect, is a great achievement we are proud of. Our growth, as well as the opening of offices in the mentioned cities and countries, was gradual and followed market needs, developments, and the opportunities that arose during certain periods – such as the launch of COSCO’s regular shipping line service to Rijeka and Koper. That service was certainly a strong incentive for us, as agents of one of the world’s largest shipping companies, to firmly establish ourselves in the regional market. In this market, we are recognized not only as agents but, lately, increasingly more as logistics integrators and shipbrokers, which is the strategic direction of the company and the group. One of our key advantages and points of difference compared to the competition lies in our flat organizational structure with few decision-making levels, which enables quick decision-making and flexibility.
- We live in times of wars and inflation, when maritime routes are often closed or transport becomes difficult. All of this affects the prices of both your services and goods for end consumers. How do you determine the pricing for your services, and how different is the situation (better or worse) compared to 5 years ago or earlier (excluding the pandemic period)?
We considered the “new normal” to be what followed during and after the Covid-19 pandemic, which it certainly was. However, since then, we have witnessed so many unpredictable circumstances and events – especially in the world of logistics and transportation – that instability has effectively become the constant. Setting prices in maritime transport, particularly on long intercontinental routes, depends on many factors, including the mentioned geopolitical instabilities, making it a very challenging task for ship-owners and operators. The highly risky passage through the Bab el-Mandeb Strait due to Houthi attacks has especially forced liner shipping companies to abandon this significantly shorter route through the Red Sea and instead navigate around Africa. The second part of logistics begins after the cargo arrives at the port, followed by delivery to the end customer. This involves the entire chain of services, from port terminal operations, customs procedures, and possible storage and delivery to the final destination. How you price this part largely depends on your client and their expectations. If speed of delivery is critical, you will likely use a truck rather than a train, but this service will certainly be more expensive. Some clients prefer a predetermined price for delivery and ancillary services, while others are comfortable negotiating the price once the cargo is already at the port.
- In the region, you operate in four countries, some of which are EU members and some are not. What are the differences in doing business between them in terms of legislation, and how is your communication with decision-makers regarding your needs? What are the most common problems? Can business in Slovenia and Croatia be compared to that in the most developed countries in Europe?
It is certainly evident that the advantages of the single market and EU legislation are particularly visible in Croatia and Slovenia, as they provide companies with new and simpler opportunities to conduct business with other EU members and to transport their cargo through the ports of Rijeka and Koper. The common currency and, above all, customs procedures, combined with favourable geographic positions, give these ports a significant comparative advantage in attracting cargo from EU countries, particularly Central Europe. There are still some minor differences in the implementation of certain customs procedures in Croatia, for example, but we are working on this in cooperation with the Customs Administration, and we encounter understanding and willingness to harmonize any discrepancies. Therefore, I believe that doing business in Croatia and Slovenia, which joined the EU, the Schengen Area, and adopted the euro much earlier – can be compared with the most developed EU countries.
- How and to what extent does geopolitics affect your business?
Geopolitics certainly impacts our business, as maritime transport depends on international relations, trade routes, and political stability. New customs standards set by the current U.S. administration affect all stakeholders in maritime shipping. This does not necessarily involve bans or conditions that agents must comply with or monitor, but it influences the decisions of shippers and producers, who may hesitate to send cargo until the situation becomes fully clear, or recipients may refuse cargo already in transit. For example, sanctions against Russia and the situation in the Black Sea have led to the rerouting of certain shipping lines, as well as restrictions on trading most goods with Russia
- The implementation of new technologies in business is essential for further development. How do digitalization and AI affect your business, in what ways, and are there any new models you are applying?
There is a lot of talk about AI and the disappearance of certain jobs, or even entire business sectors, which has understandably caused some fear and unease among people when AI is mentioned. The reality, however, is somewhat different. AI is already happening, but it is not some supernatural force that will destroy us. With careful consideration and control, we can derive significant benefits from it across all activities, including shipping and logistics. Maritime transport itself is somewhat less exposed to the influence of AI and digitalization, but logistics certainly is exposed. In logistics, optimization is a fundamental aspect of business, and today’s technological capabilities surpass the cognitive abilities of most people. Take, for example, trucks transporting goods from the port of Rijeka to destinations in Europe or our region. Dozens of trucks from a transport company are on the roads daily, and every owner wants to utilize them as much as possible – whether through return trips or additional deliveries to nearby countries – while ensuring they are still available on time for new cargo and contracts already scheduled from the port. Certain applications and solutions can perform these tasks in minutes or even seconds, taking into account kilometres, fuel consumption, required driver breaks, and so on, and can repeat these tasks consistently regardless of the time of day or frequency of requests.
- What projects and plans would you highlight in Croatia and the region? Where and how do you see the company you lead in 5 years from now?
At Dragon Maritime, we aim to establish ourselves as a stable and reliable integrator of services in maritime transport, i.e., logistics. I believe we are on the right path, and if we compare the situation to five years ago, we can see a significant difference in our operations and the range of services we offer. Over the next 5 years, we want to achieve similar progress, particularly through the application of the aforementioned digital technologies, which will help us realize our plans while keeping us in direct contact with our clients – a factor we have noticed remains high on their list of priorities.