Kusto Logistiсs has been functioning only for a month but the volume of transportation has already reached 10000 tonnes. And this is only the beginning. The director of the company Oleksandr Pyrohov told us about the further plans and prospects for development.
“Our principled stand is living up to commitments”
— I have worked at the company for more than half of year. Originally, I served as the “Kusto Agro Trading” Deputy Director General for Logistics, and now I chair the Department of Logistics.
— What functions are delivered to Kusto Logistiсs?
— Not only do we engage in “Kusto Agro” logistics but also we provide services to outside depositors. In particular, we cooperate with a few big agricultural holdings. The main direction of our company’s activity is rail shipments. We can handle different types of railway carriages: corn hopper cars, covered trucks, tank-wagons, etc., so we can carry out transportation of various kinds of cargoes.
— You concentrate on rail transport, and what about highway transport?
— Looking ahead, a division of automobile transportation will be necessarily created but as for now, the main focus is on the development of the railway direction. Anyway, if necessary, we provide the service of transportation by road. Such a need may arise if a contractor has a small amount of production, and it’s not reasonable to order a railroad car. For instance, there are 20 tonnes of cargo but depending on a culture, 60-70 tonnes are needed for a carload.
— So you provide services to outside companies, don’t you?
Today Kusto Logistiсs has a professional team, and we have enough of knowledge to provide logistics services on the whole territory of Ukraine. We completely secure the “Kusto Agro” needs by using our elevators and our partners’ enterprises as well. Surely, we constantly develop and cooperate with outside contractors. Over time a number of our contractors will grow. Our principled stand is living up to commitments.
— What is the correlation of transportation between “Kusto Agro” and other bailors?
— As for today, it’s around fifty-fifty but in a few months, the volume of transportation for outside organizations will be a minimum of 90 percent. We have all capacities for securing such results. The basis of our algorithm of cooperation is a service. We have transparent and democratic prices, we don’t obtrude redundant service. Above all, a client should receive proper service. Professionals, who know this business, work at our company. I, personally, have a huge experience; I used to work as the Operations Director in the leading Ukrainian company “First logistics company”.
— What is the state of technical supply?
— Currently, we have 20 rented wagons. Due to good planning, we don’t have problems with the provision of the inventory fleet. Nevertheless, we understand that in order to discharge our duties to the full extent, particularly at the height of the season, we need our own fleet of cars. Therefore, Kusto Logistics works in the direction of purchasing and handling a personal rolling stock; meantime, we solve organizational issues, calculate an optimum quantity of wagons required for our company. I think that soon it will be possible to see new modern wagons running on the whole territory of Ukraine with a Kusto Agro logotype.
We have a large experience in working with containers. Kusto Agro has its own stuffing equipment and storage container yard. These capacities allow performing all necessary operations before shipment of our containers to the port and before the direct export.
“If Kusto Logistiсs gets down to business, it will be done”
— The important moment is the provision of relevant documents. What about this aspect?
— We provide all documents mentioned in a contract; we can provide a minimum list of required documents when shipping to the port or a full package of export delivery: customs clearance, documentation for a chamber of commerce, and phytosanitary and veterinary certificates of the export sample. The company provides the availability of all documents required for carrying goods. We have all necessary permits. By now, our company has registered with the customs, passed phytosanitary inspection, and has a single sender and recipient code on all six Ukrainian railways. It has all permits for export and import shipment.
— What risks can arise in a process of transportation and how do you minimize them?
— On the railway, risks are a common thing. The inventory fleet is not in a proper state: it is outdated, so it can be damaged. During shoulder season, when grain is coming short, Ukrzaliznytsya can employ wagons for loading rubble, scalping, and other commodities. We, instead, protect a client from such situations. If we are provided with wagons in improper condition, we either get them in order or return. Before loading, we detect all defects. Kusto Logistiсs works in a way that a client doesn’t need to worry about a shipment.
— There is another significant aspect for bailors – on-time delivery…
— The company gives maximum warranties. We don’t promise what we can’t perform – reputation is important for us, and we take care of our reputation. If we pledge a commitment, we will do everything properly. If two weeks are provided in a contract, we guarantee that the work will be done in two weeks. The main thing is that if Kusto Logistiсs gets down to business, it will be done.
— Do you provide a full package of services related to shipment or are there any aspects that are not in the company’s area of activities?
— Our main principle is that our client only needs to make an application, the rest will be done by us. We have absolutely a transparent price formation. We provide the cost of documents and services. We don’t sell them in packages. If a client doesn’t need any document, we won’t charge for it.
— What are the short-term plans for the company’s development?
— Now all the team of Kusto Logistics works persistently in order to have our own carriage rolling stock. This will enable us to avoid the dependency on Ukrzaliznytsya and exclude loading of our contractors’ production to damaged wagons. We also will be able to transport more cargo and guarantee our contractors a product delivery of excellent quality in the shortest term.