Logistics service provider EUTRACO is launching a €300m investment plan. CEO Serge Gregoir expresses ambition to become the third largest logistics player in the Belgian market and show itself as a challenger in Europe.
By 2025, EUTRACO aims to expand to an area of 1 million m2. Currently, Katoen Natie, H.Essers and Tabak Natie are the leading companies in Belgium in terms of logistics footprint. ‘”They are not sitting still either, of course, but with around 1 million m2 on Belgian soil, we are getting close to them,” says Gregoir.
Buy-out
The 38-year-old entrepreneur has no shortage of ambition. His roots are deep in logistics, including a steep career at logistics giant DHL, where he started on an interim contract at 18. After a decade under the wings of that German global player, Gregoir went his own way, first as a freelancer for a large group in the Netherlands, and from 2017 on board at EUTRACO as external CEO. A management buyout followed in 2020, with Gregoir buying the company from Bart and Marij Pattyn.
Warehousing is our core business, complemented by transport services. We have an air freight division, sea freight division and our own customs agency
The company was at a crossroads at the time. A large part of turnover consisted of transport activities, a small part of warehousing. The choice was clear: either focus on scaling up, or choose a specialisation. EUTRACO chose the latter: become a prominent Belgian player operating locally and helping customers with all facets of logistics and transport.
“We want to unburden the entire chain, with a strong focus on IT and process optimisation. Warehousing is now our core business, complemented by transport services. We have an air freight division, sea freight division and our own customs agency – all to support our warehousing services,” Gregoir said.
Taking risks
EUTRACO distinguishes itself by taking risks in an industry that is usually cautious. For example, the company built a 60,000 sq m warehouse in Willebroek without having customers in advance. “We succeeded. Every year we build more than 100,000 m2 on speculation. Our newest campus in Ghent Kluizendok covers 75,000 sqm. Over the next 24 months, 300,000 sqm are planned to be delivered, including 200,000 sqm of expansion in Gent Kluizendok. It seems like a risk, but demand for our services remains. The bigger we get, the more efficient and better our services become. Companies like Coca Cola, INEOS and Longi choose us because of our capacity and quality.”
No acquisitions
The growth plan focuses on increasing the footprint from 300,000 to 1 million sqm. “We want to grow to 600,000 sq m organically in the next two years,” says Gregoir. He stresses that the company has not made any acquisitions so far, so there is a harmonised and unified operation across all sites. The CEO believes that growth to 1 million sq m by 2026 or 2027 could also be organic.
EUTRACO is headquartered in Roeselare and has branches in strategic locations within the golden triangle of Brussels, Antwerp and Ghent. There is also activity in the Charleroi region, albeit rather modest. The Zeebrugge region to Dunkirk and Calais are emerging regions. “They are quite close together, which fits with our philosophy of building in areas we already know. When we start a new project in those regions, teams and activities are already on site,” Gregoir says.
Capital-intensive
The transformation from transporter to total logistics service provider, the steep growth curve of recent years and Gregoir’s buyout of the Pattyn/Andries family imply a leaden financial trajectory for the EUTRACO group. “Our business is very capital-intensive. It is partly and thanks to the support of our partners that we have been able to write this story in recent years. Their patience and belief in our plans has been vital.”
“By the way, we are very pleased that now in 2023 – the first time in my time at the group – we have managed to secure funding for the coming years. With the Welfare Fund on board as provider of a mezzanine, with banking partners Belfius and ING in combination with Gigarant and TRYG, complemented by alternative financing through Econocom and committed bespoke real estate developments for EUTRACO amounting to 300,000 sqm, we are really ready for the future,” Gregoir concludes.
