Fan Courier: OUG 114 limits growth for us and our business partners

Anca Alexe 26/03/2019 | 09:03

Emergency Ordinance 114, which introduced new taxes in several industries, most notably banking, telecom and gas, is also indirectly affecting other sectors in the economy, including the courier market, according to Adrian Mihai, one of the founders of Fan Courier, the largest private company in the courier industry, cited by profit.ro.

“At the beginning of 2018, all our business partners were full of enthusiasm, anticipating two-figure growth, budgets were built on rising orders and investments, and that’s what Fan Courier did as well, registering a 20 percent growth in the first 3 months of last year. Currently, due to OUG 114/2018, the enthusiasm of the business environment has been replaced by caution, there’s a sense that we should wait and see how things will evolve. Fan Courier’s growth in the first two months of 2019 was 13.5 percent, below the estimated 15 percent,” said Adrian Mihai.

OUG 114’s most controversial points were a “greed tax” on bank assets, capping gas sale prices for producers at RON 68/MWh, requiring private pension funds to increase their capital and lowering the administration fees they collect, as well as new taxes for telecom companies. Finance minister Eugen Teodorovici said on Monday that the government would pass a new emergency order to change some of the provisions of OUG 114 next week.

Adrian Mihai also complained about the lacking road infrastructure in Romania, which leads to longer delivery times.

“Fan Courier invested EUR 26 million in a new sorting centre and we managed to save time as our cars go out on the roads quicker, but all this effort is almost completely cancelled out by the infrastructure, which can’t take on the flow of vehicles,” he said.

Fan Courier was founded in 1998 by Adrian Mihai, Neculai Mihai and Felix Patrascanu and has been the leader of the Romanian courier market since 2006. Its 2018 turnover has been estimated at EUR 145 million.

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